Apple margin forecast drags tech as crude surges on Iran island attack
· Technology · CNBC, Bloomberg
Apple's disappointing gross margin forecast of 45-46% pressured the tech sector despite better-than-expected $114.48 billion in revenue, with Morgan Stanley and JPMorgan cutting price targets to $350 and $355 respectively. Crude oil prices accelerated gains after a surprise attack on Iran's Qeshm Island, while Asian markets traded sharply lower on AI stock nerves. The Nasdaq-100 closed in correction territory, more than 10% below its Oct. 6 record high, amid midterm voting and geopolitical uncertainty. Daniel Newman of Futurum Group told CNBC the next leg of the AI trade may depend more on a ceasefire than earnings, as lower oil could ease data center costs and reduce pressure for a December rate hike.
Why it matters
Apple's margin warning hits tech investors and consumers, while the Iran oil strike threatens to lift fuel costs and inflationary pressure as data center builders face higher capital costs amid geopolitical tension.
Read the original report — CNBC
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