Apple (NYSE:AAPL) shares continue to tumble as its two most important markets do battle with trade wars.
AAPL – Daily Chart
The price of AAPL stock failed above the previous resistance at $236.87 and has now dipped through support at $198.25. The market may look for a short-term bounce as we probe lower levels toward $170.
Apple stock was set for another tough day on Monday as panic mode continued in the media over the weekend. The company was sold off as new tariffs were unveiled over the weekend.
President Trump’s tariffs have affected every country that supplies components to Apple. That means Apple now has to pay more for its imports, and is unlikely to avoid raising its prices to match the strain.
The market also reacted to the prospect of American consumers facing higher prices, and saw high volume sell-offs ahead of the weekend. The fallout is equally hitting other technology firms as analysts look at supply chains for each sector.
During his tariff announcement, Trump spoke about Apple and their planned investment of $500 billion in the US “They never spent money like that here,” he said.
Apple has spent years, and its suppliers have spent billions, trying to disconnect from China. However, the country still dominates Apple’s supply chain and that is unlikely to change.
Heading into Monday’s session, markets will be focused on news that China will impose a 34% tariff on all imports from the US starting on April 10. The country is hitting back with its own level of tariffs and markets are likely to be on edge over the coming weeks.
Apple shares lost around 14% of their value over the past week as tech stocks continued to suffer from a lack of AI adoption and deeply overbought conditions.
