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A look at the day ahead in U.S. and global markets

By Amanda Cooper, EMEA breaking news editor – markets

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To anyone watching the stock market over the last year, it would seem the letters “AI” are akin to a magic wand that will pump up the share price of any company involved in it.

That sprinkle of pixie dust has made chipmaker Nvidia the world’s second-most valuable company after Microsoft, which in turn has seen its own shares rise 30% in the last 12 months, leaving Apple in the number three spot.

Apple CEO Tim Cook attends a panel discussion with Craig Federighi and John Giannandrea during the annual developer conference event at the company’s headquarters in Cupertino, California, U.S., June 10, 2024. REUTERS/Carlos Barria

So when loyal fans – and tech analysts – around the world gathered to watch Apple’s annual Worldwide Developers Conference on Monday, it was with the expectation of seeing a dazzling array of AI features that would put the iPhone maker in good standing to compete in this area with market-leader Microsoft.

In a nearly two-hour long presentation, CEO Tim Cook, along with a string of other execs, unveiled how the new “Apple Intelligence” technology will be folded into the existing suite of apps including Siri, along with OpenAI’s chatbot ChatGPT.

Wall Street offered a tepid response. Shares in Apple fell around 2% in regular trading and are drifting in this morning’s premarket, down around 0.5%.

Tesla boss Elon Musk said on X he would immediately ban Apple devices at his companies if the iPhone maker integrates ChatGPT at the operating system level.

Yet analysts say Monday’s event was about more than just folding AI into its devices for Apple – it’s also about reversing a decline in sales of its flagship iPhone.