Apple’s iPhone 17 Pro, with its enhanced 8x zoom, promises to bring clarity to what matters most. For consumers, this means capturing life’s fleeting moments in greater detail. For Apple, it translates directly to a stronger balance sheet.
The tech giant reported a robust 16% year-on-year increase in first-quarter revenue, driven by “staggering” iPhone demand that exceeded market expectations. Despite this strong financial performance and a favorable revenue forecast for the current quarter, Apple’s stock saw a modest 0.5% rise in after-hours trading. This subdued investor reaction may stem from concerns that Apple is still lagging in the crucial artificial intelligence race, a domain where competitors are making significant strides.
In stark contrast, Meta Platforms experienced a surge, with its shares climbing over 10%. This rally was fueled by clear indications that the company’s substantial AI investments are beginning to yield tangible returns and positively impact its profitability.
Meanwhile, Microsoft faced a significant market correction, with its stock plummeting 10% and erasing $357 billion in market capitalization – its steepest decline since March 2020. Investors appeared to penalize the company for its aggressive spending plans on AI development and a notable slowdown in its cloud growth segment.
The tech-heavy Nasdaq Composite reflected this sentiment, declining by 0.72%. The S&P 500 also saw a slight dip of 0.13%, while the Dow Jones Industrial Average managed to eke out a marginal gain of 0.11%. The broader market downturn extended to cryptocurrencies, with Bitcoin tumbling over 5% to its lowest point in nearly two months.
Amidst the market volatility, gold offered a glimmer of optimism, rebounding after an earlier dip. The precious metal had reached an all-time high of $5,626.8 earlier in the day, attracting profit-taking before recovering.
Geopolitical tensions also played a role, with oil prices jumping more than 3% following reports that U.S. President Donald Trump was considering strikes on Iran. These developments occurred as President Trump announced his intention to name a new Federal Reserve chair on Friday morning and endorsed a Senate deal aimed at averting a government shutdown.
Looking ahead, investors are closely watching India’s Union Budget presentation for the fiscal year 2027 on February 1st. Analysts at BofA Securities have cautioned that this event could potentially trigger a market sell-off.
**Key Market Developments:**
* **Denmark-U.S. Greenland Talks:** Denmark’s foreign minister described recent high-level discussions concerning Greenland’s future as “very constructive,” signaling a positive step forward in bilateral relations.
* **Amazon Explores OpenAI Investment:** Discussions are reportedly underway between Amazon and OpenAI regarding a potential investment of up to $50 billion. This move signifies Amazon’s strategic interest in the AI landscape, even as it continues to invest in its competitor, Anthropic.
* **U.S. Trade Deficit Widens:** The U.S. trade deficit surged by 94.6% to $56.8 billion in November, a significant increase despite ongoing tariff measures.
* **European Markets Dip on Earnings:** Europe’s Stoxx 600 index fell by 0.23%, with SAP experiencing a notable 16% decline following disappointing earnings reports.
* **Strategic Metal Dependency:** Russia and China’s significant control over a critical metal essential for military hardware has prompted a U.S. company to pursue domestic production alternatives, earning it a “buy” rating from an investment bank initiating coverage.
**Norway’s Sovereign Wealth Fund Sees Record Returns:**
Norway’s sovereign wealth fund, the world’s largest, posted an impressive annual profit of 2.36 trillion kronor ($246.9 billion) for 2025. The fund achieved its highest-ever annual return of 13.5 trillion kronor, a performance significantly bolstered by strong gains in technology, financial, and basic materials sectors, according to NBIM CEO Nicolai Tangen.
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