Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Morning Bid: Apple's AI push and the trouble with Europe

Published 2024-06-11, 06:04 a/m
© Reuters. Apple CEO Tim Cook attends a panel discussion during the annual developer conference event at the company's headquarters in Cupertino, California, U.S., June 10, 2024. REUTERS/Carlos Barria/File Photo
MSFT
-
AAPL
-
NVDA
-
TSLA
-

A look at the day ahead in U.S. and global markets by Amanda Cooper.

To anyone watching the stock market over the last year, it would seem the letters "AI" are akin to a magic wand that will pump up the share price of any company involved in it.

That sprinkle of pixie dust has made chipmaker Nvidia (NASDAQ:NVDA) the world's second-most valuable company after Microsoft (NASDAQ:MSFT), which in turn has seen its own shares rise 30% in the last 12 months, leaving Apple (NASDAQ:AAPL) in the number three spot.

So when loyal fans - and tech analysts - around the world gathered to watch Apple's annual Worldwide Developers Conference (WWDC 2024) on Monday, it was with the expectation of seeing a dazzling array of AI features that would put the iPhone maker in good standing to compete in this area with market-leader Microsoft.

In a nearly two-hour long presentation, CEO Tim Cook, along with a string of other execs, unveiled how the new "Apple Intelligence" technology will be folded into the existing suite of apps including Siri, along with OpenAI's chatbot ChatGPT.

Wall Street offered a tepid response. Shares in Apple fell around 2% in regular trading and are drifting in this morning's premarket, down around 0.5%.

Tesla (NASDAQ:TSLA) boss Elon Musk said on X he would immediately ban Apple devices at his companies if the iPhone maker integrates ChatGPT at the operating system level.

Yet analysts say Monday's event was about more than just folding AI into its devices for Apple - it's also about reversing a decline in sales of its flagship iPhone.

As far as the market is concerned, for once, there are bigger fish to fry than AI mania today. Political turbulence in Europe after right-wing gains in elections and a snap poll in France have injected a degree of uncertainty into stocks, bonds and currencies.

The Federal Reserve releases its decision on interest rates tomorrow, along with updated projections for inflation, monetary policy and growth - the so-called "dot plot".

After Friday's blockbuster jobs report, the focus is squarely on how many rate cuts Fed policymakers believe will be forthcoming this year. Even Siri can't answer that question right now.

Key developments that should provide more direction to U.S. markets later on Tuesday:

© Reuters. Apple CEO Tim Cook attends a panel discussion during the annual developer conference event at the company's headquarters in Cupertino, California, U.S., June 10, 2024. REUTERS/Carlos Barria/File Photo

* U.S. NFIB Small Business Optimism Survey

* U.S. Treasury 10-year auction

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.