Apple's collapse overshadows banks' positive profits

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The S&P 500 breaks its three-day streak of gains
American markets fell on ThursdayWith S&P500 broke a three-day winning streak. Treasury yields he retreated further due to decreasing inflation concerns. Pan-European Stoxx600 index added 0.98%. Richemont rose 16% after reporting a better-than-expected result 10% sales growth in the fiscal third quarterpushing other luxury sector stocks higher.

The apple falls
Apple the company's shares fell 4% on Thursday, causing losses almost 12% from the stock's last peak in December. The slide followed a Thursday report from research firm Canalys, which said the iPhone maker had slipped to third place in terms of smartphones sold in China in 2024, behind domestic makers Vivo and Huawei.

Potential US Treasury Secretary Testifies
Scott Bessent, chosen by US President-elect Donald Trump as Secretary of the Treasury, testified Thursday before the Senate Finance Committee. During the session, Bessent, a hedge fund manager, presented Trump's proposed policy will not cause inflationdescribed U.S. spending as “out of control” and I ran cold water at the thought of the possible US digital currency.

Little economic growth in the UK
The The UK economy grew by 0.1% in November.– the Central Statistical Office reported on Thursday. The increase was lower than 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
Given that two inflation reports remained muted, further increases can be expected in 2025, according to stock exchange data UBS. The bank expects the S&P 500 to reach 6,600 by December, up 11% from its current level. Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, explains UBS's optimistic view.

Reports of falling iPhone sales in China sent Apple shares tumbling, leading to its worst day since August 5. Shares of other “Magnificent 7” companies also expressed sympathy: Tesla retreated by 3.4%, Nvidia lost almost 2%, i Alphabet decreased by approximately 1.4%.

In 2025, Apple was by far the worst company of the Magnificent Seven.

With all the “Magnificent 7” action that fueled it more than half of S&P 500 gains in 2024 — ending the session in the red, the broad base index was unable to maintain the upward momentum from Wednesday.

The S&P decreased by 0.21%, i.e Dow Jones Industrial Average lost 0.16% and the technology sector was heavy Nasdaq Compositee decreased by 0.89%.

This is despite a strong start to the earnings season. Of the companies that reported, 77% exceeded expectations, according to FactSet data.

Bank of America AND Morgan Stanley reported beating expectations profits. Ultimately, however, they were not enough to lift the indexes, which suggests that the stock market's performance still depends on technology.

“Bank earnings were overwhelmingly positive early on, but it appears there will have to be more, and that is what today looks like,” said Keith Buchanan, senior portfolio manager at Globalt Investments.

That said, tech stocks and markets could gain ground if inflation stays under control later in the year.

US Federal Reserve Governor Christopher Waller he told CNBC in an interview Thursday that if inflation data turns out to be benign, he “can certainly expect rate cuts to come sooner than perhaps markets are pricing in.”

More optimistically, Waller even suggested there could be “four cuts, three cuts, depending on what the data says this year.”

If that were to happen, Apple stock – and other interest-rate-sensitive tech stocks – could defy gravity to rise again.

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