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Former US House Speaker Nancy Pelosi made big trades in several major technology stocks, including Apple, Nvidia, Amazon and Alphabet, between mid-December and mid-January, a filing showed on Monday. Pelosi- who currently represents California’s 11th congressional district- sold 31,600 shares of Apple Inc (NASDAQ:AAPL) common stock for between $5 million and $25 million on the last trading day of 2024, by far her biggest trade over the past month, a Periodic Transaction (JO:TCPJ) Report showed. She also purchased 50 call options with a strike price of $150 and an expiration date of January 16, 2026, in Alphabet Inc Class A (NASDAQ:GOOGL) stock and Amazon.com Inc (NASDAQ:AMZN), respectively. Both purchases were valued between $250,001 and $500,000, and occurred on Jan 14 2025. Pelosi sold 10,000 shares of NVIDIA Corporation (NASDAQ:NVDA) common stock for $1 million to $5 million. She also exercised 500 call options on Nvidia worth between $500,001 to $1 million, and purchased 50 call options in the chipmaker with a strike price of $80 and an expiration date of Jan 16, 2026. Among other transactions, Pelosi exercised 140 call options in Palo Alto Networks Inc (NASDAQ:PANW) worth $1 million to $5 million, and purchased 50 call options in Tempus AI Inc (NASDAQ:TEM). Pelosi also purchased 50 call options in Vistra Energy Corp (NYSE:VST). Pelosi, and her husband Paul Pelosi, have been largely active in equity markets, with critics arguing that her status as a lawmaker gives her an edge. Note: Vistra is up 363% in the last year

Jefferies analysts downgraded Apple stock to Underperform from Hold on Monday as they expect the tech giant to miss both earnings and guidance targets in its upcoming fiscal Q1 2025 report. The company's shares fell around 1% in premarket trading Tuesday. Jefferies' price target on Apple Inc (NASDAQ:AAPL) stock was also reduced to $200.75 from $211.84, implying a 13% downside from the last closing price. The bearish expectations come amid weak iPhone sales and a subdued outlook for iPhone 17 and 18 due to “slower AI uptake and commercialization,” analysts said in a note. They project Apple to fall short of its revenue growth guidance of 5% for the first quarter and to guide to only low single-digit revenue growth in the second quarter, also below consensus. Jefferies has reduced their forecast for iPhone shipments from a 1% growth to a 2% decline for the first quarter of fiscal year 2025, based on data indicating a roughly 4% year-over-year decrease in iPhone shipments during this period, according to the International Data Corporation (IDC). The sell-through of iPhones in China during the same quarter is reported to have dropped significantly, while international markets might see marginal growth. Furthermore, the outlook for other Apple products such as iPads and MacBooks is bleak due to the overall weakness in the consumer electronics market. The downgrade of Apple stock also reflects concerns over the March quarter guidance, which analysts believe could disappoint investors. Despite optimism about demand in China due to government subsidies, new policies will limit these subsidies, effectively excluding most iPhone models.

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The relationship between interest rate cuts by the Federal Reserve and bond yields is typically straightforward: bond yields often fall when the Fed cuts rates, but why did not work this time; The bond market's reaction to rate cuts depends on various factors beyond the Fed's immediate actions. Inflation expectations, fiscal policy, market sentiment, and global dynamics all play critical roles. 1. Market Expectations Already Priced In If the Fed's rate cut is anticipated well in advance, the bond market may have already priced it in. In this case: - Yields may remain steady or even rise if investors perceive the Fed's action as insufficient or delayed. - For example, if inflation remains high or there are concerns about the Fed's ability to control it, yields could rise despite a rate cut. 2. Persistent Inflationary Pressures If inflation expectations remain elevated, bond yields may stay high or rise even after a rate cut: - Bond investors demand higher yields as compensation for losing purchasing power due to inflation. - Long-term yields, more influenced by inflation expectations than short-term rate changes, may reflect concerns that inflation isn't under control. 3. Concerns About Fiscal Policy Expansive fiscal policies, such as large government spending programs or high deficits, can exert upward pressure on yields: - Investors may fear higher borrowing needs by the government, increasing the supply of bonds and pushing yields up. - Expectations of a higher debt burden can cause investors to demand higher yields for holding bonds. 4. Shift in Risk Sentiment If investors are concerned about risks such as geopolitical tensions, economic uncertainty, or financial instability, they may prefer the safety of short-term assets like Treasury bills or cash over longer-term bonds: - This can lead to a divergence where short-term yields fall while long-term yields remain elevated or rise. 5. Yield Curve Dynamics The shape of the yield curve can provide insights: