Tech-led weakness pulled the “Magnificent 7” down on Thursday, with Tesla and Apple standing out after sharp gains the day before. Persistent geopolitical tensions in the Middle East have kept pressure on growth names for weeks, and despite a Wednesday rally that pushed the S&P 500 and Nasdaq to fresh records, the market gave back some of those gains on Thursday.
Tesla reversed part of an 8% Wednesday surge after CEO Elon Musk teased the company’s AI5 chip. The project’s timeline and cost outlook rattled investors: Tesla insiders say the fab won’t start producing silicon until around 2029 and will scale up after that, while Bernstein analysts warned the program could imply eye‑watering capital expenditure in the $5 trillion–$13 trillion range — a scale that prompted questions about potential revenue impact and the opportunity cost of such investment.
Apple faces its own high-stakes moment ahead of earnings. iPhone demand remains solid and Services revenue continues to grow, but margin and cost pressures plus the anticipation of the next major product cycle raise the bar. Analysts are optimistic — modeling a roughly $100 billion buyback, a ~5% dividend bump, and product upgrades that include AI features — and some firms are already lifting price targets: Bank of America raised its target to $325 citing iPhone and Services strength, while Bernstein reiterated an Outperform with a $340 target. Still, a disappointment could send AAPL shares lower.
For crypto traders and risk-on investors, these tech moves matter: big tech narrative shifts can drive broader sentiment that spills into digital assets. (For example, Solana’s technical setup remains a focal point for crypto markets as traders watch key resistance levels.) As markets digest earnings, capex plans and geopolitical headlines, expect choppy trading and heightened sensitivity across both equities and crypto.
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