Major indices closed lower as Apple's product event failed to impress investors, who remain wary of margin compression and high valuations across the tech sector.
Apple shares fell 0.28% as concerns over foldable iPhone margin pressure and lofty valuation offset AI upgrade enthusiasm.
Alphabet dropped 2.28% as investors tracked AI competition pressure around Apple's launch event.
The S&P 500 closed down 0.48% as weakness in major tech names, including Apple and Microsoft, dragged the index.
The Nasdaq Composite fell 0.64% on declines in Apple, Microsoft, and Alphabet amid AI competition concerns.
Microsoft edged down 0.47% as sector-wide AI competition pressure weighed on hardware and software tech stocks.
The S&P 500 and Nasdaq Composite retreated on Tuesday as investors reacted to Apple's latest product launch. Shares of Apple fell 0.28% despite the debut of its first foldable iPhone and new AI-integrated devices, as concerns over margin pressure and a lofty 36x forward P/E ratio weighed on sentiment. Tech peers Microsoft and Alphabet also faced selling pressure, with Alphabet dropping 2.28% amid intensifying AI competition.
Investors were concerned about potential margin pressure from the new foldable iPhone and higher component costs, while also noting that the stock's current valuation is high relative to its historical average.