US Stocks Fall as Market Watches Iran Talks; Apple Drops 2% on Downgrade
On.cc · 2 SOURCESabout 1 hour ago2 MIN
Summary
US equity indices retreated in early trading Tuesday as investors adopted a cautious stance ahead of any potential US-Iran agreement regarding the Strait of Hormuz. The Dow Jones shed 89 points, the S&P 500 fell 4 points, and the Nasdaq slid 42 points, while oil prices climbed 2.2% to $79.89 per barrel on supply concerns. Apple led tech decliners with a 2% drop after Jefferies downgraded the stock, citing doubts about iPhone pricing power, though Microsoft rose 1% on plans to ramp up next-generation AI chip production.
Key Points
- The Dow Jones Industrial Average fell 89 points to 53,947; the S&P 500 slipped 4 points to 7,753; the Nasdaq Composite declined 42 points to 26,648
- Hong Kong futures traded at a discount, with the H-shares futures closing 46 points below the Hong Kong Monday close at 25,891
- Apple (AAPL) plunged over 2% after Jefferies cut its rating to "underperform," questioning the company's ability to raise iPhone prices
- Intel (INTC) tumbled 5% after announcing a $150 billion stock offering to fund AI chip development, advanced packaging, and external foundry expansion
- Microsoft (MSFT) gained 1% as the company reportedly plans to significantly increase production of next-generation AI chips
- Oil prices rebounded 2.2% to $79.89 per barrel for NY crude futures amid renewed supply anxieties
Why It Matters
Chris Larkin, managing director at Morgan Stanley E*Trade, noted that markets struggle to respond positively to negotiations until an actual US-Iran accord is reached, adding that pessimism could intensify if this week's US inflation and retail sales data fail to show weakness . Meanwhile, JPMorgan strategists raised their year-end S&P 500 target to 8,000 points, arguing AI investment could accelerate corporate earnings growth .
Chris Larkin, managing director at Morgan Stanley E*Trade, noted that markets struggle to respond positively to negotiations until an actual US-Iran accord is reached, adding that pessimism could intensify if this week's US inflation and retail sales data fail to show weakness . Meanwhile, JPMorgan strategists raised their year-end S&P 500 target to 8,000 points, arguing AI investment could accelerate corporate earnings growth .