US Open: Wall Street continues downtrend on Monday, Moderna plunges

• 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.

European 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