A sign of the 7th China International Import Expo is seen with the Lujiazui Financial District skyline in the background on November 2, 2024 in Shanghai, China.
VCG | Visual China Group | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open informs investors about everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
China’s GDP to grow 5% in 2024
The Chinese economy grew by 5 percent year on year in 2024, according to China State Bureau of Statisticsin line with Beijing’s official target of “around 5%”. In the fourth quarter, gross domestic product rose 5.4%, higher than the 5.0% estimate in a Reuters poll of economists, as Beijing’s stimulus measures kicked in. However, analysts are still hopeful more policies to strengthen the country’s economy.
S&P 500 snaps three-day winning streak
the US market fell on Thursdaywith S&P 500 breaks his three-day winning streak. Treasury yields pulled further on the weakening fears of inflation. Asia-Pacific shares were mixed on Friday. Mainland China and Hong Kong markets rose after the release of China’s 2024 GDP data from Japan Nikkei 225 lost 0.45% as Nintendo shares fell by about 4.6% after the announcement of a successor to its Switch console.
The apple is falling
Apple shares fell 4% on Thursday, with losses almost at 12% from the stock’s last peak in December. The weakening comes after a report by market research firm Canalys released on Thursday said the iPhone maker would fall to third place in terms of smartphone sales in China in 2024, behind domestic makers Vivo and Huawei.
Potential US Treasury Secretary testifies
Scott Bessent, US President Donald Trump’s choice for Secretary of the Treasury, he testified before the Senate Finance Committee on Thursday. During the session, Bessent, a hedge fund manager, said Trump’s proposed policies will not cause inflationdescribed US spending as “out of control,” and poured cold water on the idea of the possible American digital currency.
[PRO] Tariffs threaten retail stocks
Several consumer staples stocks are at greatest risk of being hit by US President-elect Donald Trump’s plan to impose tariffs, according to Wolfe Research. These are popular retailers of clothing and household goods, of which stocks are investing they did not take tariff risks into accountthe research firm said.
Conclusion
Thursday’s decline in Apple shares snapped a three-day winning streak for the S&P.
Reports of declining iPhone sales in China dragged down Apple shares, leading to their worst day since August 5. Other “7 Magnificent” stocks also fell in sympathy: Tesla retreated 3.4%, Nvidia lost almost 2%, and Alphabet fell by about 1.4 percent.
Apple has been the worst-performing stock in the Magnificent Seven so far in 2025.
With all the shares of the “7 magnificent” — which they drove more than half of the S&P 500’s gains in 2024 — ending the session in the red, the broad index was unable to sustain the forward momentum from Wednesday.
The S&P slipped 0.21%, the Dow Jones Industrial Average lost 0.16% and tech Nasdaq Compositee fell 0.89%.
That’s despite the earnings season getting off to a good start. Of the companies that reported, 77% beat expectations, according to FactSet data.
Bank of America and Morgan Stanley reported expectations-beating earnings. But they ultimately weren’t enough to lift the index, suggesting that stock market performance is still dependent on technology.
“Earnings started with the banks definitely positive, but it looks like it’s going to have to be more than that, and that’s what today’s action looks like,” said Keith Buchanan, senior portfolio manager at Globalt Investments.
Still, tech stocks and markets could rally if inflation appears to be under control later in the year.
US Federal Reserve Governor Christopher Waller he told CNBC in an interview Thursday that if the inflation data is benign, he “can certainly see rate cuts happening before maybe the market dictates that.”
More optimistically, Waller even suggested there could be “four cuts, three cuts, depending on what the data tells you this year.”
If that were to happen, Apple shares — as well as other rate-sensitive tech stocks — could defy gravity and soar again.
— CNBC’s Jeff Cox, Hakyung Kim and Sarah Min contributed to this report.
