- Apple’s warning is a bad sign for bulls
- Wall Street will likely have a tough year, experts believe
- The news will affect market sentiments
After major losses in December, Wall Street is now facing another problem in the form of weak iPhone sales. Apple recently told the media that iPhone demand was weak during the holidays, and Wall Street views the news as a bad sign. Investors are expecting a difficult year ahead.
Investors were hoping that the situation would be a lot better at the beginning of 2019, but the market is still reeling from December’s losses. In addition to the rates hikes and the political uncertainty brought about by the White House, analysts say that Washington’s trade war with Beijing is costing American equities. Fears of a looming global financial crisis were rife in the past week but expert analysis was varied, ranging from optimistic to gloomy. After Apple’s report, however, the overall view is more pessimistic.
Apple sales in China suffered in December, sending its stocks down by 7.5%. According to reports, 1.3% was knocked off S&P 500 futures. Investors are expected to be more skittish today.
Synovus Trust Co. Senior Portfolio Manager Daniel Morgan said in an interview: “People are looking for a January rally effect as they place bets for the new year. Apple puts a bit of a sour tone on that.”
“It raises concerns about whether current estimates for the quarter are too high,” he added.
Apple’s stock market value tumbled on Wednesday and is now below $700 billion; it reached over $1.1 trillion at its peak last year. Nevertheless, Apple remains one of America’s most widely-held stocks. Experts note, however, that this is a double-edged sword because its recent warning will negatively impact investor sentiments.