- Major indices decline, with US100 leading losses at -1.31% to 20,744.21, US2000 down -1.13% to 2,177.0, while VIX jumps 4.23% to 19.73
- Apple faces headwinds as iPhone sales drop 5% in Q4, with global market share falling to 18% amid delayed AI rollout and legal challenges in UK and EU
- Biden administration announces stricter AI export controls requiring approval for overseas computing facilities, impacting tech sector with Nvidia shares declining
- Johnson & Johnson announces major expansion in CNS treatment with $14.6B acquisition of Intra-Cellular Therapies at $132 per share, representing 35% premium
- Moderna shares collapse 23% after significant downward revision of 2025 revenue guidance, announcing major cost reduction initiatives amid weakening vaccine demand
Major indices are declining, with the US2000 down -1.13% to 2177.0 and below the “Trump Levels”, followed by the US100 falling -1.31% to 20744.21. The US500 is down -0.75% to 5822.2, while MEXComp remains flat at 0.00% at 50234. Market volatility is elevated, with the VIX up 4.23% to 19.73.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appEuropean markets are broadly lower, with the W20 showing the steepest decline at -1.75% to 2240.6, followed by ITA40 (-1.19% to 34795). Other notable declines include SUI20 (-0.91% to 11661), EU50 (-0.88% to 4957.6), and FRA40 (-0.65% to 7403.4). The VSTOXX is up 2.70% to 19.03, diverging from the broader market weakness.
S&P 500 Sectors Mixed: The market shows a mixed picture with several sectors in positive territory. Energy leads the gains (+1.57%), followed by Materials (+0.77%) and Health Care (+0.33%). Information Technology leads the declines (-1.76%), followed by Communication Services (-1.36%) and Utilities (-1.11%). Consumer Discretionary (-0.98%) and Consumer Staples (-0.27%) are also in negative territory. The overall S&P 500 is down -0.73%.
Current volatility observed on Wall Street. Source: xStation
The Nasdaq-100 index, represented by the US100 contract, is trading below the critical support at the 61.8% Fibonacci retracement level. For bears, immediate downside targets include sustaining below the 61.8% Fibonacci retracement level, followed by the 100-day SMA at 20,576 and the 78.6% Fibonacci retracement level.
The RSI has broken below a historically significant support level, signaling the potential continuation of bearish momentum. Meanwhile, the MACD remains in a downtrend, further confirming the prevailing bearish sentiment. Source: xStation
News:
- Apple (AAPL.US) faces market share pressure as iPhone sales decline 5% in Q4, with global share slipping to 18%. The company's delayed AI rollout, particularly in China where Apple Intelligence remains unavailable, contributed to weaker performance despite strong Pro model demand. The broader smartphone market grew 4% while Apple saw a 2% full-year decline. Apple also confronts legal challenges in the UK over App Store practices and faces EU scrutiny over new developer fee structures.
- US Export Controls target AI advancement as Biden administration unveils strict new rules requiring government approval for AI model exports and overseas computing facilities. The measures affect companies like Nvidia (NVDA.US), whose shares dropped 3.7% as VP criticized the "sweeping overreach." While 18 close allies including UK and Germany receive exemptions, over 120 countries face new restrictions. Companies can apply for tiered access levels, with maximum caps around 50,000 advanced AI chips per country.
- Moderna (MRNA.US) plunges 23% after slashing 2025 revenue guidance to $1.5-2.5B from previous $2.5-3.5B forecast, citing weakening Covid vaccine demand and competitive pressures. The company plans $1B in cost reductions for 2025 and additional $500M cuts in 2026. CFO noted Covid vaccination rates fell 7% in retail market during fall 2024 versus prior year.
- Shake Shack (SHAK.US) shares down 2% despite beating Q4 expectations with same-store sales growth of 4.3% and restaurant-level margins of 22.7%. The company projects 16-18% revenue growth for 2025 and plans to expand to at least 1,500 locations. CEO Rob Lynch's initiatives on supplier negotiations and labor scheduling show early success in boosting profitability.
- Johnson & Johnson (JNJ.US) announces $14.6B acquisition of Intra-Cellular Therapies at $132 per share in cash, sending ITCI shares soaring 35% premarket to $128. The deal strengthens J&J's CNS portfolio with lumateperone, an approved treatment for schizophrenia and bipolar disorder, plus Phase 2 candidate ITI-1284 for anxiety and Alzheimer's-related conditions. The healthcare giant plans to finance the acquisition through cash and debt, with closing expected later this year. Financial impact details will be shared during J&J's Q4 earnings call on January 22.
Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
