Apple’s decline overshadows positive earnings for banks

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The S&P 500 snapped a three-day winning streak
US markets fell on Thursdaywith S&P 500 snapped his three-day winning streak. Treasury yields retreated further to reduce inflationary fears. General Europe The Stoxx 600 Index added 0.98%. Richemont jumped 16% after the better-than-expected report Sales growth in the third fiscal quarter was 10%.pushing up other stocks in the luxury sector.

The apple falls
an apple shares fell 4% with losses on Thursday up nearly 12% from the stock’s most recent peak in December. This comes after research firm Canalys published a report on Thursday that said the iPhone maker would drop to third place in terms of smartphone sales in China in 2024, behind homegrown makers Vivo and Huawei.

Prospective US Treasury Secretary Testifies
Scott Bessant, US President Donald Trump’s nominee for Treasury Secretary, testified Thursday before the Senate Finance Committee. During the session, Besant, a hedge fund manager, spoke about Trump’s proposed policies will not lead to inflationdescribed US spending as “out of control“, and poured over the idea of ​​the possible The digital currency of the United States.

Low economic growth in the UK
The The UK economy grew by 0.1% in November.data from the Office of National Statistics showed on Thursday. The rise was below the 0.2% month-on-month gain expected in a Reuters poll. Disappointing gross domestic product figures are 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
Stock market looks set to rise further in 2025, according to two muted inflation reports UBS. The bank expects the S&P 500 to reach 6,600 by December, implying an 11% gain from current levels. Salita Marcelli, Chief Investment Officer, Americas, UBS Global Wealth Management, explains the optimistic view of UBS.

Apple’s decline on Thursday snapped a three-day S&P winning streak.

Reports of falling iPhone sales in China dragged down Apple shares, sending them to their worst day since August 5. Other actions of the “Magnificent Seven” also fell in love: Tesla retreated 3.4%, Nvidia lost almost 2%, and Alphabet decreased by approximately 1.4%.

In 2025, Apple’s stock was the worst among the Magnificent Seven.

With all the supplies of the “Magnificent Seven” – who were traveling more than half of the S&P 500’s gains in 2024 — ending the session in the red, the broad index failed to sustain its forward momentum from Wednesday.

The S&P slipped 0.21%, art Dow Jones industrial index lost 0.16% and tech Nasdaq Compositee fell by 0.89%.

Despite the earnings season getting off to a good start. Of the companies that reported, 77% beat expectations, according to FactSet data.

Bank of America and Morgan Stanley reported expectations-beating salary. But in the end, they weren’t enough to lift the indexes, suggesting that the stock market’s performance is still dependent on technology.

“The gains started with banks being decidedly bullish, but it looks like more will be needed than that, and today’s action looks like that,” said Keith Buchanan, senior portfolio manager at Globalt Investments.

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

The head of the US Federal Reserve System, Christopher Waller told CNBC said in an interview on Thursday that if the inflation data is benign, he “could certainly see a rate cut sooner than perhaps the markets have priced it in.”

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 were to happen, shares of Apple, as well as other tech stocks that depend on rates, could rise again under the force of gravity.

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