Shares in Apple Inc. slipped 3.87% Thursday amidst a broad market sell-off precipitated on global economic concerns. AAPL ended the day at US$377.37 per share, down $15.20 (-3.87%), on heavy volume of 31 million shares trading hands.
All of the major stock indices also fell sharply, with the DOW closing at 11,383.680, down 512.76 (-4.31%), the NASDAQ at 2,556.390, down 136.68 (-5.08%), and the S&P at 1,200.070, down 60.27 (-4.78%).
Behind the decline were concerns about a double dip recession in the U.S. and mounting worries about Europe’s economy. Today’s correction was the sharpest decline since 2009 during the recession brought on by the mortgage crisis. All told, U.S. stocks have sold off some 10% in the last week.
John Brady, Senior VP of interest rate products at MF Global, told Barrons that a decision by the Bank of New York to start charging large customers for the privilege of holding on their cash was the spark that led to the sell-off.
“I think the real fear is kind of what happened with Bank of New York today,” Mr. Brady said. “You are now going to be penalized for keeping money in the bank. I think that has shaken up the markets. Charging investors 13 basis points [0.13%] to keep cash on hand is pretty punitive. It starts to smell like Japan.”
*In the interest of full disclosure, the author holds a tiny, almost insignificant share in AAPL stock that was not an influence in the creation of this article.