The Nasdaq fell on Thursday, dragged down by Apple’s (AAPL) ongoing decline as the tech giant’s shares fell following news that China has banned its citizens from using the iPhone and intends to expand the ban to state-owned businesses.
With a small 0.2% gain on Thursday, the Dow Jones Industrial Average (DJI) was the only index to be in the green. The Nasdaq Composite (IXIC), which is heavily weighted in technology, fell by over 1%, while Apple (AAPL) fell by almost 3%. The S&P 500 (GSPC) decreased by approximately 0.3%.
Last week, unemployment claims reached their lowest levels since February, another indication that the Federal Reserve will likely maintain higher interest rates longer. The unexpected result came as statistics released on Wednesday showed that US services activity reached a six-month high in August, which was considered as a sign of consumer and economic resilience in the face of rising borrowing prices.
After Thursday’s China trade numbers failed to allay concerns about sluggishness in the second-largest economy in the world, the rise in oil prices (CL=F) that questioned the Fed’s efforts to reduce inflation took a backseat. There are concerns over whether the Chinese economy’s decline poses a “top risk” to the US economy.
These stories are contributing to the discussion on whether the Fed will be convinced to maintain high rates at its September meeting, which will take place in a few weeks.
CFPB: Apple and Google are “choke points” for the US payments system
Big tech is once again a target of the US government. Rohit Chopra, director of the Consumer Financial Protection Bureau, claimed on Thursday that internet behemoths like Apple (AAPL) and Google (GOOGL) are stifling innovation in the US payment system.
According to Jennifer Schonberger of Yahoo Finance:
During a fintech conference hosted by the Philadelphia Federal Reserve, Chopra stated that “regulations imposed by Big Tech firms have a big impact on whether consumers and businesses can make payments using third-party apps.”
“We need strong challenges to dominant Wall Street banks and card networks,” he continued. However, there is legitimate concern that the biggest technological corporations will be able to install additional toll booths and gates that will hinder smaller enterprises from establishing themselves, obtaining funding, expanding, and succeeding even if they provide superior technology.
Chopra’s remarks come in response to a long-awaited CFPB study that was released on Tuesday and focused on how Big Tech rules have affected tap-to-pay features used on mobile devices like smartphones and watches.
The ability of app developers to incorporate near field communication (NFC) technology, which is required to carry out the tap-to-pay transactions, into their apps is governed by rules imposed by Apple and Google. If an app does not adhere to their rules, access may be refused or the app may be removed.
Big tech is once again a target of the US government. Rohit Chopra, director of the Consumer Financial Protection Bureau, claimed on Thursday that tech behemoths like Apple (AAPL) and Google (GOOG, GOOGL) are stifling innovation in the US payment system.
According to Jennifer Schonberger of Yahoo Finance:
During a fintech conference hosted by the Philadelphia Federal Reserve, Chopra stated that “regulations imposed by Big Tech firms have a big impact on whether consumers and businesses can make payments using third-party apps.”
“We need strong challenges to dominant Wall Street banks and card networks,” he continued. However, there is legitimate concern that the biggest technological corporations will be able to install additional toll booths and gates that will hinder smaller enterprises from establishing themselves, obtaining funding, expanding, and succeeding even if they provide superior technology.
Chopra’s remarks come in response to a long-awaited CFPB study that was released on Tuesday and focused on how Big Tech rules have affected tap-to-pay features used on mobile devices like smartphones and watches.
The ability of app developers to incorporate near field communication (NFC) technology, which is required to carry out the tap-to-pay transactions, into their apps is governed by rules imposed by Apple and Google. If an app does not adhere to their rules, access may be refused or the app may be removed.
As far as we are aware, there is no similar gatekeeper for using a web browser to access services, according to Chopra.