Apple’s decline overshadows positive bank earnings

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The S&P 500 snapped a three-day winning streak
US markets fell on Thursdaywith S&P 500 snapped a three-day winning streak. Treasury revenues retreated further on waning inflation fears. All over Europe Stoxx 600 index Added 0.98%. Richemont rose 16% after reporting that it was better than expected 10% increase in sales in fiscal third quarterpushing other stocks in the luxury sector.

The apple falls
apple shares fell 4% with Thursday’s losses about 12% from the stock’s most recent high in December. The slide comes after market research firm Canalys reported on Thursday that the iPhone maker fell to third place in terms of smartphones sold in China in 2024, behind local makers Vivo and Huawei.

A potential US Treasury Secretary testifies
Scott Bessent, who was chosen by the newly elected US President Donald Trump as the Minister of Finance, testified before the Senate Finance Committee on Thursday. During the session, hedge fund manager Bessent outlined Trump’s proposed policies. will not cause inflationUS spending “out of control,” and threw cold water on the possible idea US digital currency.

Modest economic growth in the UK
The The UK economy grew by 0.1% in NovemberThe information of the National Statistics Office showed on Thursday. The increase was below the 0.2% monthly expansion expected in a Reuters poll. The disappointing gross domestic product figure is fueling expectations that the Bank of England will cut interest rates at its next meeting on February 6.

(PRO) S&P should hit 6,600, says UBS
With two inflation reports silent, the stock market is poised for further gains in 2025. UBS. The bank expects the S&P 500 to reach 6,600 by December, an 11% upside from its current level. Solita Marcelli, Americas Chief Investment Officer, UBS Global Wealth Management, Explains UBS’s optimistic outlook.

News of declining iPhone sales in China sent Apple shares lower, leading to their worst day since August 5. Other “Magnificent 7” stocks also fell favorably: Tesla retreated 3.4%, Nvidia lost about 2% and Alphabet decreased by about 1.4%.

Apple has been the worst-performing stock in the Magnificent Seven so far in 2025.

With all the shares of the “Magnificent 7” – which drove More than half of the S&P 500’s gains in 2024 — the broad-based index, which ended the session in the red, failed to maintain its momentum from Wednesday.

The S&P It decreased by 0.21% Dow Jones Industrial Average 0.16% and tech lost heavily Nasdaq Compositee decreased by 0.89%.

That’s despite a strong start to the earnings season. According to FactSet data, 77% of reporting companies beat expectations.

Bank of America and Morgan Stanley informed beat expectations profit. But they ultimately weren’t enough to lift the indexes, suggesting that stock market performance is still dependent on technology.

“Earnings started with banks definitely being positive, but it looks like it’s going to be more than that, and today’s activity shows that,” said Keith Buchanan, senior portfolio manager at Globalt Investments.

However, if inflation comes under control later in the year, tech stocks and markets could rise.

US Federal Reserve Governor Christopher Waller told CNBC If inflation data is unfavorable, he “could definitely see rate cuts happening sooner than the markets are pricing in,” he said in an interview Thursday.

On a more optimistic note, Waller even suggested there could be “four cuts, three cuts depending on what the data tells you this year.”

If that happens, Apple shares, as well as other rate-sensitive tech stocks, could defy gravity to rally again.

— CNBC’s Jeff Cox, Hakyung Kim and Sarah Min contributed to this report.