Apple Bites The Dust Due To Downgrade
London: 3 January 2024 (TraderMade): Apple's stock took a brutal hit after analysts at Barclays downgraded it, citing concerns about weak demand for the latest iPhone. The 3.68% plunge, Apple's worst since September, erased a staggering $107 billion in market value.
Apple stocks (AAPL) lost by 3.68% to 185.57 at about 12:40 PM GMT (compared to its Friday, 29 December 2023 Close).
Barclays analysts downgrade Apple
Barclays analysts slashed Apple's rating and lowered their price target, predicting a reversal after a year of market outperformance despite missed earnings targets. Their research suggests continued iPhone struggles, with no compelling upgrades in sight for the next model.
This comes as a blow to Apple, which surged 50% and hit a record $3 trillion market valuation last year on hopes of iPhone resilience in a tough economy. However, doubts are swirling about its ability to maintain this momentum, fueled by rising competition and China's crackdown on foreign tech.
Wall Street stumbles on apple downgrade, tech tumble
Market Mood: Wall Street kicked off 2024 with a muted performance, weighed down by Apple's 3.68% drop after a Barclays downgrade citing weak iPhone demand. Other tech giants like Nvidia, Meta, and Microsoft also dipped.
Fed in Focus: Market participants remain cautiously optimistic about the Fed, hoping for potential rate cuts later this year. Minutes from the December meeting and upcoming labor data will be closely watched for clues.
Significant indices plummeted
- Standard and Poor's 500 index (SPX500) declined by 0.91% to 4728.25
- Nasdaq 100 (NAS100) dropped by 2.31% to 16456.25
- Dow Jones Industrial Average Index (USA30) dipped by 0.188% to 37632
(Please note that the rates were at about 12:47 PM GMT, and the percentage change is calculated considering the Close of respective indices on Friday, 29 December 2023.)
Overall
Market remains cautious despite a strong year in 2023. Tech woes and Apple's drag overshadow brighter spots like healthcare and bitcoin's resurgence. Investors wait with bated breath for the Fed's next move.
