Tech gauge drops as world’s most valuable company takes a hit from chip shortage

13 Oct 2021

📉 SPX | 4,351 (-11, -0.2%)
📉 DJIA | 34,378 (-118, -0.3%)
📉 CCMP | 14,466 (-20, -0.1%)

🏦 Stocks fell ahead of the earnings season to begin tonight, as jitters over supply chain disruptions and inflation weigh on sentiment. More Federal Reserve officials have also stated in their clearest language yet that inflation seems to be lasting “longer than expected”, while taper conditions have “all but been met”.

🛫 Sky-high profit expectations for Q3 earnings amidst the spread of the Delta variant will be put to the test come Wednesday’s earnings season kick-off. Analysts are projecting +28% profit growth on average for firms in the S&P500.

🍎 Apple (-0.9%) is rumoured to be finally cutting its iPhone 13 production projections for 2021 by more than 10 million units thanks to the lack of chips, perhaps vindication for many who have been sceptical that the company seemed to have been unbothered by the severe shortage.