The fall of Apple casts a shadow over the banks' positive profits

This report is from today's CNBC Daily Open, the international markets newsletter. CNBC Daily Open keeps investors informed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

The S&P 500 snaps a three-day winning streak
American markets It fell on Thursdaywith Standard & Poor's 500 Her three-day winning streak snapped. Treasury revenues I backed away further On the decline in inflation fears. Pan-European Stoxx 600 index 0.98% added. Richemont It jumped 16% after reporting better-than-expected results 10% increase in fiscal third quarter salesWhich pushed other stocks in the luxury goods sector higher.

Apple falling
apple Shares fell 4% on Thursday with losses Nearly 12% from the stock's recent peak In December. The decline comes after a report released Thursday from market research firm Canalys said the iPhone maker has fallen to third place in terms of smartphones sold in China in 2024, behind local manufacturers Vivo and Huawei.

Prospective US Treasury Secretary testifies
Scott Besent, US President-elect Donald Trump's nominee for Treasury Secretary, He testified Thursday before the Senate Finance Committee. During the session, Bessent, a hedge fund manager, spoke about Trump's proposed policies It will not cause inflationHe described US spending as “Out of control“He threw cold water on the idea of ​​the possible US digital currency.

Weak economic growth in the United Kingdom
the The British economy grew by 0.1% in NovemberData from the Office for National Statistics showed on Thursday. The growth was less than the expected monthly expansion of 0.2 percent in a Reuters poll. The disappointing GDP figure reinforces expectations that the Bank of England will cut interest rates at its next meeting on February 6.

(PRO) UBS says S&P should reach 6,600
With two subdued inflation reports, the stock market appears poised to rise further in 2025, according to… UPS. The bank expects the S&P 500 to reach 6,600 by December, which would mean an 11% rise 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 falling, resulting in their worst day since August 5. Other Magnificent 7 stocks also declined: Tesla Decline 3.4% Nvidia lost nearly 2%, and alphabet It decreased by about 1.4%.

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

With all the “Magnificent 7” shares – which led More than half of the S&P 500's gains in 2024 – Ending the session in the red, the broad-based index was unable to maintain its forward momentum starting on Wednesday.

the Standard & Poor's It decreased by 0.21% Dow Jones Industrial Average Lost 0.16% and heavy on technology Nasdaq CompositeIt decreased by 0.89%.

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

Bank of America and Morgan Stanley I mentioned Multiplication predictions Profits. But it was ultimately not enough to lift the indexes, indicating that stock market performance still depends on technology.

“Bank earnings are definitely starting to be positive, but it looks like there will be more than that, and that's what today's move looks like,” said Keith Buchanan, senior portfolio manager at Global Investments.

However, technology stocks and markets could rise if inflation appears to be under control later in the year.

US Federal Reserve Governor Christopher Waller He told CNBC In an interview on Thursday, he said that if inflation data is benign, he “could certainly see rate cuts sooner than markets expect.”

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

If that happens, Apple shares — as well as other interest rate-sensitive technology stocks — could defy gravity to rise again.

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