Read the highlights of this week’s commentary from Helios:
- China announced a ban on iPhones in government agencies on Wednesday, leading to a greater than 6% drop in Apple shares over two days, a nearly $200 billion loss in market value. Beijing plans to extend the restriction to state-owned enterprises and government controlled organizations, which could erode Apple’s position in the country that generates 18% of its total revenue.
- In the week ending September 2, initial jobless claims fell to their lowest level since February, while continuing claims dropped to their lowest level since July, indicating a resilient labor market.
- While the labor market is gradually softening, it remains tight, supporting consumer spending and optimism about avoiding a recession. However, economists suggest that further moderation in job growth will be needed to delay future interest rate hikes by the Federal Reserve.
- The US dollar’s rally continued with an eighth straight week of gains, the longest since 2005, due to bets on the Federal Reserve keeping interest rates high. The dollar’s strength reflects diverging economic conditions, with the US accelerating while growth cools in Europe and China.