Apple’s decline overshadows the bank’s positive earnings

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The S&P 500 has snapped a three-day winning streak
US markets it fell on thursdaywith , S&P 500 ended his three-day winning streak. Treasury yields he retreated further about fears of a decline in inflation. Pan-European Stoxx 600 index Add 0.98%. Richemont It jumped 16% after the better-than-expected report Third fiscal quarter sales up 10%pushing other shares in the luxury sector higher.

The apple falls
the apple shares fell 4% on Thursday with losses down nearly 12% from the stock’s recent peak in december The slide follows a report by market research firm Canalys on Thursday that the iPhone maker fell to third place in terms of smartphone sales in China in 2024, behind domestic manufacturers Vivo and Huawei.

The prospective US Treasury Secretary testifies
Scott Bessent, US President-elect Donald Trump’s pick for Treasury Secretary, he testified before the Senate Finance Committee on Thursday. During the session, Bessent, a hedge fund manager, touted Trump’s proposed policies it will not cause inflationHe described US spending as followsout of control,” and threw cold water on the idea of ​​a possible US digital currency.

Poor economic growth in the UK
The The UK economy grew by 0.1% in NovemberFigures from the Office for National Statistics showed on Thursday. The increase was smaller than the 0.2% month-on-month expansion in a Reuters poll. The disappointing gross domestic product figure raises expectations that the Bank of England will cut interest rates at its next meeting on February 6.

(PRO) S&P should reach 6,600, says UBS
With two muted inflation reports, the stock market looks set to rise further in 2025, UBS. The bank expects the S&P 500 to reach 6,600 by December, representing an 11% increase from current levels. Solita Marcelli, Chief Investment Officer for the Americas at UBS Global Wealth Management, It explains UBS’s optimistic outlook.

Reports of a decline in iPhone sales in China sent Apple shares down, posting their worst day since August 5. Other “Magnificent 7” stocks also fell in favor: Tesla It fell back by 3.4%, Nvidia it lost almost 2%, and the alphabet It fell by around 1.4%.

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

With all the actions of the “Magnificent 7”, it drove them More than half of the S&P 500’s gains in 2024 — Ending the session in the red, the broad index could not hold on from Wednesday.

The S&P It decreased by 0.21% Dow Jones Industrial Average It lost 0.16% and the technological ones Nasdaq CompositeIt decreased by 0.89%.

That’s despite a strong start to the earnings season. Among the companies that reported, 77% beat forecasts, according to FactSet data.

Bank of America and Morgan Stanley notify expectations-beats profits. But ultimately, they weren’t enough to lift the indexes, suggesting that stock market performance still depends on technology.

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

That said, tech stocks and markets could get a leg up as inflation looks to be under control this year.

US Federal Reserve Governor Christopher Waller he told CNBC In an interview on Thursday, if the inflation data is good, “the rate cut may be seen earlier than the market is pricing in.”

More optimistically, Waller also suggested “four cuts, three cuts, depending on what the data tells you this year.”

If that were to happen, 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.