On December 4, Apple (AAPL) fell 4.4% after President Trump said in a tweet that “I am a Tariff Man.” The tweet triggered a wide sell-off in the market. The S&P 500 benchmark (SPY) fell 3.2% on December 4, while the NASDAQ Composite Index (QQQ) and the Dow Jones Industrial Average fell 3.8% and 3.1%, respectively. Microsoft (MSFT), IBM (IBM), and Alphabet (GOOGL) fell 3.2%, 3.0%, and 5.0%, respectively, on December 4. Now, let’s see how Apple stock is set to extend these losses on December 6.
Read Trump Makes Stock Market Bleed Again Saying “I am a Tariff Man” to learn more about why President Trump’s tweet hurt investors’ sentiments.
Losing streak continues
On December 6 at 8:26 AM EST, in the pre-market session, Apple stock fell 2.3% from the previous day’s closing price. Apple extended the losses seen on December 4. On a sequential basis, Apple has lost 21.7% compared to the NASDAQ Composite Index’s 10.9% losses in the fourth quarter.
On December 4, analysts at HSBC downgraded Apple to a “hold” from a “buy” rating, according to a CNBC report. HSBC also lowered its target price on Apple to $200 from $205, which shows 13.2% upside potential from its closing price of $176.69 on December 4.
What to expect
Apple stock could continue to suffer amid rising concerns about its new iPhone sales. President Trump’s comments, suggesting 10% tariff on Apple’s iPhones and MacBooks imported from China, could continue to make the company’s situation worse. President Trump made these comments during an interview with The Washington Post on November 27.