US stocks looked like they were going to finish on a high note, but the morning bounce was short-lived as selling pressure returned. Wall Street was grasping for reasons to be optimistic. Many traders’ minds were not on trading as America remembers the September 11 attacks. The 20th anniversary falls on Saturday, which will be filled with prayers, ceremonies, and solemn gestures around the world.
The S&P 500 index initially rallied on optimism Wall Street could see some constructive steps amongst the world’s two largest economies after Chinese President Xi and US President Biden spoke for the first time since February. Chinese tech stocks benefited the most as investors viewed dialogue between the two presidents as supportive for the global economic recovery and possibly some calm over the recent string of crackdowns from Beijing.
The focus quickly shifted from Biden/Xi to Apple’s defeat against Fortnite creator, Epic Games’ antitrust lawsuit. US District Judge Yvonne Gonzalez Rogers ruled that Apple has engaged in anticompetitive conduct that hurts consumers. The ruling was not a complete loss for Apple as the court did not find them as an antitrust monopolist in the submarket for mobile gaming transactions.
If this is the beginning of further lawsuits for Apple, this could unravel some investors, as Apple’s margins seem at risk. Despite the potential hit to Apple’s service revenues, investors will likely salivate if share prices produce a decent pullback.
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