PPI Inflation Fails to Stop Apple Stock Drop 13% This Week, Nasdaq Down 4%
Today stock markets are bearish despite a soft PPI inflation report, with Nasdaq and Apple stock around 2% down so far.
NASDAQ Continues to Slide After Recent Highs
The NASDAQ index is under pressure once again, falling 300 points (-1.5%) in volatile trading today. This marks the fourth consecutive day of losses, with the index now down about 14% from its February peak of over 22,000 points and 5% lower for the trading week.
Since reaching its all-time high last month, the NASDAQ has struggled to maintain momentum, with investors shifting away from riskier assets. The decline follows a period of significant gains earlier this week, but bearish sentiment has returned, driving further losses across major indices.
Broad Market Weakness Hits S&P 500 and Dow Jones
The S&P 500 is also experiencing selling pressure, currently down 50 points (-1%) at 5,535. The index has now lost 4% for the week, reflecting broader weakness across the equity markets.
The Dow Jones Industrial Average opened with a small gap lower but has since dropped 400 points, putting it down 4.5% for the trading week. Investors appear to be shifting toward defensive assets, as concerns over interest rates, earnings, and economic outlooks weigh on sentiment.
Apple Stock Plunges Amid AI Strategy Concerns
Among the hardest-hit stocks this week is Apple (AAPL), which has extended its losing streak, falling another $5 today (-2.5%). The stock has been in a steady downtrend since peaking near $260 in December, but this week’s losses have been particularly sharp, with Apple shares down nearly $30 (-13%).
The recent selloff intensified after reports that Apple has indefinitely delayed its AI-powered assistant update, Siri 2.0. With investor confidence shaken, Apple’s next key support level is the 200-day SMA at $209, where buyers may attempt to stabilize the stock, since the softer US PPI inflation didn’t help the market sentiment much.
February’s US PPI data came in softer than expected, reinforcing the disinflationary trend seen in recent CPI reports. The flat month-over-month reading and decline in core PPI suggest that producer costs are stabilizing, reducing near-term inflationary pressures.
US PPI Final Demand – February 2025 Report
Headline Producer Price Index (PPI):
- Month-over-Month (MoM): 0.0% vs 0.3% expected (Prior: +0.4%) – No inflationary increase for the month.
- Year-over-Year (YoY): 3.2% vs 3.3% expected (Prior: 3.5%) – Inflation slowing but still elevated.
Final Demand Breakdown:
- MoM: 0.0% vs 0.3% expected – Stagnant pricing pressure in producer costs.
- YoY: 3.2% vs 3.3% expected – Slight cooling, aligning with broader disinflation trends.
Core PPI (Excluding Food & Energy):
- MoM: -0.1% vs 0.3% expected (Prior revised up from 0.3% to 0.5%) – Unexpected decline, indicating weaker underlying price growth.
- YoY: 3.4% vs 3.5% expected (Prior revised up from 3.6% to 3.8%) – Still elevated but trending downward.
This supports expectations for Federal Reserve rate cuts later in 2025, as inflation continues to moderate. However, markets will closely watch consumer demand and upcoming economic data to confirm whether this slowdown in producer prices translates into lower consumer inflation.
Conclusion: Market Uncertainty Continues to Drive Selling Pressure
With major indices posting steep weekly declines, the market remains under heavy selling pressure as investors reassess risk exposure. Tech stocks, including Apple, have faced particularly strong headwinds, raising questions about whether the broader market correction will continue or if buyers will step in at key support levels.
Nasdaq Index Live Chart
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