Tech Shakeout as Apple Takes a Bite

Inflation fears receding as oil fades

Key Takeaways

• Chip Squeeze Hits the Tech Trade: The Tech trade is taking some heavy hits overnight, following on from Apple’s plans to raise prices on some products due to rising costs associated with a shortage of chips. There were heavy losses in Tech names, which weighed on stocks in Asia and across Europe. News that OpenAI might delay its IPO did not help sentiment. 

• AI Costs Move Into Focus: There might be a bit of a narrative shift on inflation. Oil isn’t the bogeyman now. Instead, the focus might be on AI-related cost pressures. This emerges from the Apple price hike news, and we know that there are a lot of firms that have had squeezed margins and are salivating at raising prices. However, those firms are not Apple and might not be able to follow their example.