Apple stock cracks 11% YTD to test key technical level, ranks worst among Magnificent Seven since new year | Stock Market News

Apple Inc.’s stock has had a rough start to the year and is now flirting with a key level that could signal more downside ahead if breached.

The stock has slumped 11% in 2025 through Thursday’s close, making it by far the worst performer in the Magnificent Seven group. It has also significantly underperformed the S&P 500, which has gained about 4% to touch a fresh record high to start the year. Apple’s performance is the worst start of the year for the iPhone maker since 2008, according to data compiled by Bloomberg.

The decline has brought shares within a few dollars of the 200-day moving average, a technical level that can be seen as a long-term support and is one that many traders watch.

The level is “always a good reference point of trend,” said Todd Sohn, an ETF and technical strategist at Strategas Securities LLC. “When you get names starting to flirt with it or start to break below it, you kind of lose confidence that the uptrend of that name is still intact.”

It’s a precarious position for Apple shares. The company was, until recently, the largest company by market value in the world, and commanded the largest weighting in the S&P 500 Index. Nvidia has since eclipsed it during Apple’s tumble.

While one single stock doesn’t always move the rest of the index, Apple’s size and position make it one to watch. So far, the S&P 500 has continued to rally, even with Apple’s selloff, but if any of the other big technology stocks similarly start to tick lower, it could be a concerning sign for the bull market that’s now entering its third year.

“The market has been pretty resilient in light of the fact that Apple has been under pressure,” Katie Stockton, managing partner and founder of Fairlead Strategies LLC, said. Still, “it definitely has the potential to create some more risk for those major indices. If we see that downside follow-through that we’re anticipating, that makes it more challenging, of course, for those indices to shrug it off.”

Stockton sees further declines for Apple stock, she said. If shares do fall below the 200-day moving average, the next level she’s watching is around $208, based on a technical analysis called Ichimoku.

That level “is a more likely point for the correction to mature,” Stockton said. “We obviously don’t have a crystal ball, but based on where they currently stand, it looks like we’ll see the 200-day moving average taken out and progress toward that secondary support.”

Apple is scheduled to report quarterly earnings Jan. 30 after markets close, a major catalyst for shares that investors will be closely watching. Wall Street expects the iPhone maker to report earnings per share of $2.35 on $124.2 billion in revenue.

Of course, Apple shares could just test the 200-day moving average level and rebound higher, especially if it reports earnings that beat analyst expectations. While the 200-day is a key psychological level that can be a warning sign for stocks, some traders may also use it as an indicator to start buying shares at a discount.

“You could have buyers who maybe set the 200-day level as a spot to add more exposure,” said Sohn. “So then the question becomes; if you hold here, can Apple rally back to $260?”