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Wall Street closed lower on Friday, with investors assessing signs of rising inflation as Apple’s stock fell, after an unfavorable move related to its App Store.
US producer price data showed a sharp rise in August, leading to the largest annual gain in nearly 11 years and indicating high inflation is likely to continue given pandemic pressures on chains supply.
Sentiment was also affected by comments from Cleveland Federal Reserve Chairman Loretta Meester, who said she still preferred the central bank to start cutting asset purchases this year, despite the weak report on employment in August.
The Standard & Poor’s 500 index rose around 19% in 2021, supported by lax central bank policies and optimism about the economy reopening.
Apple’s stock plunged after a judge overturned a key part of its App Store rules, which benefits app makers.
Shares of app makers like Spotify Technology, Activision Blizzard and Electronic Arts rose.
A federal judge on Friday issued a ruling blocking restrictions Apple has placed on developers using its App Store to process user payments.
The judge ordered that an alternative purchasing mechanism be made available to developers outside of the store, who received a 30 percent commission on sales through their store.
The decision is expected to come into effect on December 9.
Such a change could save app developers billions of dollars, which could prompt them to lower the prices paid by consumers.
Based on unofficial data, the Dow Jones Industrial Average fell 0.77% to close at 34,609.96 points, while the Standard & Poor’s 500 index fell 0.77% to 4,458.71 points. The Nasdaq Composite Index lost 0.85% to 15,117.97 points.
The top three clues had received some support earlier thanks to news of a phone call between Chinese President Xi Jinping and American Joe Biden, which was seen as a positive sign and could lead to a breakthrough in relations between the two most important trading partners in the world. .
US company Didi Global fell after Chinese government officials ordered major taxi delivery companies and apps to improve income distribution and ensure workers get breaks.
Grosser Kroger’s shares fell after it said disruptions in global supply chains, shipping costs, discounts and waste would hurt profit margins.
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