Apple Inc. (AAPL) shares are facing downward pressure, trading down 2.9% amid broader market declines and two key bearish catalysts. The stock initially dropped as much as 5.1% during the session, reflecting investor concerns over escalating geopolitical tensions in Iran and a cautious outlook from UBS regarding App Store growth. As of 2:35 p.m. ET, the S&P 500 and Nasdaq Composite were also in negative territory, down 0.5% and 0.7%, respectively.

The geopolitical situation has raised fears of inflationary pressures, particularly with rising crude oil prices, which could prompt the Federal Reserve to consider interest rate hikes. Such developments are particularly concerning for tech stocks like Apple, which thrive in low-rate environments. UBS’s report highlighted a stagnant growth outlook for Apple’s App Store in the U.S., forecasting only 7% year-over-year growth for the March quarter, leading to a neutral rating and a price target of $280.

Market professionals should closely monitor how geopolitical risks and earnings forecasts impact tech valuations, as continued uncertainty could lead to further volatility in Apple shares and the broader tech sector.

StoxFeed tracks this as a market signal: Oil prices are responding to OPEC decisions and geopolitical tensions

Source: fool.com