S&P 500 Forecast: Will February’s Weak Seasonal Development Cap Features for US Indices?…

Apple is among the many most uncovered firms to ongoing commerce tensions. Morgan Stanley warned that the 10% tariff on Chinese language items, which took impact Tuesday, may create a three.5% headwind to Apple’s earnings per share.

Whereas Apple has begun shifting manufacturing to India, its present facility there produces solely 13% of iPhones, removed from sufficient to switch the 67 million items shipped to the U.S. yearly. There may be hypothesis that the White Home may grant Apple an exemption, because it did in Trump’s first time period.

If Apple is pressured to soak up the elevated prices, it could have to boost iPhone costs by roughly three%, which analysts estimate would quantity to about an additional $1 per thirty days for shoppers over a typical two-year installment plan.

Is February a Traditionally Weak Month for Shares?

Financial institution of America’s Stephen Suttmeier cautioned that February has traditionally been one of many weaker months for equities. Since 1928, the S&P 500 has posted a achieve solely 53% of the time in February, with a mean return of -Zero.09%.

The pattern is even weaker within the first yr of a presidential time period. Historic information exhibits the S&P 500 has risen simply 46% of the time in such years, with a mean return of -1.66%. Nevertheless, seasonal developments sometimes enhance transferring into March and April.