Apple (AAPL) Shares Fall 2% on Weak Q4 Margin Forecast and iPad Sales

S&P 500 futures showed little change on Monday as investors considered Apple's (AAPL) quarterly earnings report and looked ahead to the U.S. midterm elections. Dow Jones futures gained 24 points, S&P 500 futures rose 0.1%, and Nasdaq-100 futures added 0.3%. Apple shares dropped 2% in after-hours trading following a disappointing margin forecast and iPad sales that missed estimates for the fiscal fourth quarter.

In Asian markets, South Korea's Kospi fell 3.28%, weighed down by a 4.37% decline in Samsung Electronics shares, while Australia's S&P/ASX 200 rose 0.22%. Hong Kong's Hang Seng Index was up 0.16%, offsetting energy sector losses with gains in academic and education sectors. The CSI 300 index in mainland China slipped 0.84%, driven by declines in tech and energy stocks. Japan's markets were closed for a public holiday. During the regular U.S. session, the Nasdaq Composite declined 1.07%, and the S&P 500 fell 0.51%, reflecting investors moving away from tech stocks. The Dow increased by about 214 points, or 0.41%.

Additional market moves included a 12% drop in Marvell Technology shares and an 18% fall in Lumentum shares after Marvell announced a $115 billion deal to acquire Lumentum. Oracle shares fell 8% after announcing plans to issue $10 billion in common stock and $10 billion in bonds to fund artificial intelligence initiatives. Ahead of the midterm elections, prediction markets suggested a nearly 75% chance of Democrats winning the Senate. Analysts warn that a Democratic sweep could lead to a sell-off in artificial intelligence stocks due to expected policy changes and increased oversight.

This matters for investors because Apple's guidance and sales figures directly impact tech stock performance, and the upcoming midterm elections could influence market dynamics through regulatory and spending changes. The market's reaction to these events shapes trading activity and sector allocations in the near term.