Thursday, December 15, 2022 4:18 pm6 Comments

• News

Shares of Apple slid on the Nasdaq Thursday as investors processed the latest Federal Reserve interest rate hike and as investors worry that the Fed’s hikes could potentially tip the U.S. economy into a recession.

Chris Neiger for The Motley Fool:

Making matters worse today, the latest data shows that retail sales are slowing down.

The first bit of news that tech investors were focusing on this morning is that the Fed increased interest rates by an additional 50 basis points — pushing rates up to a 15-year high.

While the latest rate increase was lower than the 75-basis-point increase of previous meetings, investors were disappointed that the Fed said that its new target rate of 5.1% is higher than many economists were expecting.

Additionally, the Fed said that the job market is still too robust for its liking.

All of that caused Apple, Amazon, and Microsoft investors to worry that the Fed will continue to take an aggressive approach to tame inflation and could end up pushing the economy into a recession.

MacDailyNews Take: Here comes the double dip!

The good news is that Apple’s customers are the least affected by inflation and recession:

Apple iPhone customers are the most recession-proof smartphone buyers. — MacDailyNews, September 7, 2022

The same goes for Mac, iPad, Apple Watch, and Apple Services customers in personal computers, tablet computers, smartwatches, and subscriptions, respectively. – MacDailyNews, October 13, 2022

The most inflation- and recession-resistant big tech company is Apple, thanks to its superior customer demographics. – MacDailyNews, October 27, 2022

When your money becomes a greater concern, you want to spend it wisely. In China and everywhere, if it’s not an iPhone, it’s not an iPhone. Further, if it’s not an iPhone Pro, it’s not an iPhone Pro. – MacDailyNews, October 27, 2022

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