[July 27, 2021] Market overview of US stocks: Falling back mainly on NASDAQ. Warning of slowing Apple sales growth
[July 27, 2021] Market overview
The US stock market fell on July 27, centered on NASDAQ’s large tech stocks.
The NASDAQ100 index fell 1.12%, but there was a 2% drop in the market.
Since the decline in the Dow is relatively small, it can be seen that there was a stock price adjustment centered on NASDAQ, which had a feeling of overheating in the stock price rise at the moment.
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Market news and impressions
(1) As for the market price yesterday, Chinese stocks are still being sold in order to avoid the investment regulation risk of the Chinese authorities. Was there a move in profitability of large tech stocks that are making a profit to make up for the loss of Chinese stocks?
(2) Apple warned that sales growth may have slowed and supply may be tight. The shortage of semiconductors could affect the iPhone and iPad this quarter. Apple had previously announced that its earnings outlook would worsen before the fall in stock prices in March 2020, but this time Apple declined to say such a forecast. This Apple outlook needs attention.
(3) In the latest World Economic Outlook (WEO) released by the International Monetary Fund (IMF) on the 27th, the 2021 global growth rate forecast has been left unchanged at 6%. However, we have revised our forecasts by country / region. The growth rate forecast for emerging market countries has been revised downward from the forecast of 6.7% as of April to 6.3%. On the other hand, the growth rate forecast for developed countries has been revised upward by 0.5 points to 5.6%. There is concern that economic disparities will widen between emerging and developed countries. Due to the worsening supply and demand of Chinese stocks, it seems better to concentrate on US stocks as investment funds.
Current market view
As for the market outlook, the good financial results of each US company have been reported one after another, so if there is a recent decline, we think that it will be an opportunity to buy a bargain.
If there is a decline in early August or early September, is it an opportunity to buy in a rush?
We are wary of the possibility of a significant decline in mid-October.