What's Going On With Apple Shares Wednesday?

Benzinga · 04/16 20:12

Apple Inc (NASDAQ:APPL) shares moved lower on Wednesday. The stock may have moved lower today on continued weakness as investors continue to weigh the potential impact of tariffs and other policy decisions.

What To Know: Earlier this week, President Donald Trump and his administration announced that certain technology, such as smartphones, will be, at least temporarily, exempt from the 145% reciprocal tariffs on Chinese imports, according to the New York Post.

Apple and other American tech companies rely on components sourced from China that could have become more expensive under the proposed tariffs. Higher production costs could have led to higher prices for consumers and ultimately lower demand.

Shares of Apple jumped on Monday after the tariff exemption news, but that “relief rally” has now faded, with Apple and other tech stocks closing lower on Wednesday.

The broader market, including the technology sector, may also be under selling pressure after Federal Reserve Chair Jerome Powell made comments about a slowing U.S. economy. According to Reuters, Powell said tariffs will likely lead to inflation and slower economic growth, however, he is waiting for more clarity before considering policy changes.

Inflation and slower U.S. growth could curb consumer spending on discretionary items like electronics. Moreover, tariffs may raise the cost of key components Apple uses in its products, squeezing profit margins.

AAPL Price Action: Apple shares closed 3.9% lower at $194.27, according to data from Benzinga Pro.

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Image: Courtesy of Apple