Apple Inc.’s stock has been battered so far this year and is now approaching a retracement level that may culminate in further selling pressure. It remains the worst off among Wall Street’s envious ‘Magnificent Seven’ group so far in 2025 and down by nearly 11 percent through Thursday’s close.
Apple has lagged the S&P 500 index which has risen by about 4 percent to hit a record high to begin the year. As the figure calculated by Bloomberg shows, Apple’s stock has shown the worst start of the year in iPhone maker’s history since 2008 and fell to the lowest level in 17 years.
Apple Stock To Test Key Technical Level; And Why Is This Important?
The shares of tech majors are down again and are only a few dollars away from the 200-day moving average, the most watched technical level that is actually long-term support for many traders. In particular, as noted by Bloomberg, the critical technical level is now quite a vulnerable situation for Apple stock.
Apple was, until recently, the company with the largest market capitalization in the world and had the greatest weight in the S&P 500 index. Apple dipped to a $10 billion market capitalization – and Nvidia has since surpassed it during its decline. Although one stock is not able to drag the entire index up or down, Apple being a large part of the Dow means it’s a stock to follow.
Thus far, however, the S&P 500 has kept on rising and this is despite the Apple selloff. Nevertheless, if any of the remaining large information technology shares begin to drip lower as the stock market enters its third year of a bull run, it could be an unfavorable omen.
Market Sentiment And Analyst Perspectives
Market sentiment surrounding Apple has shifted in light of these challenges. While some analysts remain optimistic about Apple’s long-term prospects due to its strong brand loyalty and innovative capabilities, others express caution.
For instance, Dan Ives from Wedbush Securities maintains a bullish outlook with a price target of $325, citing potential growth from AI integration and an upcoming iPhone upgrade cycle. However, this optimism is tempered by the current market realities.