Here's why Apple stocks lost more than 4% last week



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Weakness of the market at large

During the week ended May 17, the broad market remained in the red for the second week in a row. The S & P 500 Index, the NASDAQ Composite Index and the Dow Jones Industrial Average fell 0.8%, 1.3% and 0.7%, respectively, last week. Concern over the escalation of the US-China trade war has been one of the main factors that has hurt investors' sentiments. Meanwhile, Apple (AAPL) ended last week with a loss of 4.1% after falling 6.9% the previous week. Let's look at some of the major factors that weighed on the stock of the iPhone maker.

Here's why Apple stocks lost more than 4% last week

Commercial war threats

Apple is one of the most sensitive US commercial seed companies between China and the United States. Last week, the trade war between the United States and China took a nasty turn as China reacted against President Donald Trump's decision to raise tariffs on Chinese imports worth $ 200 billion. of dollars. In retaliation, China decided to raise tariffs on US imports by $ 60 billion as of June 1.

Wedbush Securities analysts Daniel Ives and Strecker Backe believe that "iPhones manufacturing costs could increase by 2-3% due to tariffs," Business Insider reported.

The Supreme Court's decision against Apple

In another blow to Apple, the Supreme Court authorized "a consumer lawsuit accusing Apple Inc. of monopolizing the market for iPhone software applications and forcing them to pay in excess," Reuters reported.

These negative factors could continue to hurt the sentiments of Apple's investors, which could lead to further losses of Apple stocks this week. On May 20 at 7:25 am Eastern Time, Apple shares traded with a 2.3% loss during the session preceding the sale.

The trade war between the United States and China is also weighing on semiconductor stocks. Last week, NVIDIA (NVDA) lost 7.3% despite better than expected results on May 16th. NVIDIA's dark economic outlook, due in part to escalating trade tensions, has kept investors pessimistic.

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