Overall the stock market did not have a good day with the Dow falling 5.55%, or 634.76 points, to 10,809.85. All of this was in the wake of a recent downgrade of the credit rating of the United States by Standard & Poor’s from AAA to AA+ at the end of the last week. While a shakeout was to be excepted today, what possible impact it would have on the tech sector was unclear. With the closing bell, Apple saw its shares dip 5.46%, or $20.41, to $353.21, and it was continuing to fall in after hours trading. Google also took a hit, falling 5.70%, or $33.02, to $546.02 with the slide continuing after the closing bell.
While certainly not a performance to put a smile on a lot of faces at either company, it also doesn’t leave either of them exactly destitute. What it does is shake up some of the faith people have had that the tech sector was going to lead us out of the recession the country has been in. Just last week analysts were predicting that Apple’s stock would hit $540 in 2012 on the back of iPad sales. While the stock is certain to rebound in the coming weeks and months, if it can possibly reach those lofty levels that soon remains to be seen.
It’s hard to say where the rest of this week will take shares of our favorite companies. You have to suspect some bargain hunters will start to appear tomorrow, but depending on the overall news of the world – both financial and otherwise – it won’t be surprising to see these stocks continue to dip even lower.
How low do you think stocks like Google and Apple could fall this week, or do you think they have a chance of rebounding?