Apple Margin Forecast Weighs on Tech as Oil Prices Climb

Global financial markets faced renewed uncertainty on Nov. 3, 2026, as Apple's weaker margin outlook pressured technology stocks, oil prices climbed following a reported US military strike on Iran's Qeshm Island, and investors assessed the potential economic consequences of the US midterm elections.

Apple shares declined in premarket trading despite quarterly earnings and revenue exceeding analyst expectations. Meanwhile, concerns about artificial intelligence valuations spread across international markets, while rising crude prices added another source of uncertainty for investors.

Apple reported earnings per share of $2.10, beating the $1.99 analyst estimate. Revenue reached $114.48 billion, compared with expectations of $113.39 billion, according to CNBC.

However, the company's projected gross margin of 45% to 46% raised concerns about profitability as the global memory chip shortage affects production costs. CNBC's Robert Hum noted that Apple last provided a margin outlook at this level almost four years ago.

Apple CEO John Ternus expressed confidence in the company's future during an earnings call with CNBC's MacKenzie Sigalos.

"I think at this point, with everything we've achieved, it just feels like we've never been more confident that the best is yet to come," said Ternus.

Morgan Stanley lowered its Apple price target to $350 from $355, while JPMorgan reduced its target to $355 from $360.

Broader technology stocks also faced pressure as concerns surrounding artificial intelligence investments spread into Asian and European trading. South Korea's and Taiwan's technology-heavy markets recorded sharp declines, while semiconductor shares fell across Europe.

The Nasdaq-100 closed in correction territory on Monday, more than 10% below its record high reached on Oct. 6. Futurum Group analyst Daniel Newman told CNBC that developments in the geopolitical situation could have a greater immediate influence on artificial intelligence investments than corporate earnings.

"A ceasefire could do more for the AI trade this month than any earnings print. Lower oil takes pressure off a December hike and cuts the cost of capital for everyone building data centers," said Newman.

Newman highlighted the relationship between energy prices, interest rate expectations and financing costs for companies investing in data center infrastructure.

Oil markets experienced another significant movement after reports of an overnight US military operation targeting Iran's Qeshm Island. Iran said it was prepared to respond to the reported strikes.

The US military's actions were also described in a report by The Wall Street Journal, citing an unnamed US official.

"Limited strikes," the official said, describing military operations Washington had conducted against Iran in recent weeks, according to the newspaper.

The report said the Trump administration had deliberately kept the campaign relatively quiet to avoid signaling an intention to escalate into a larger military confrontation.

The developments pushed crude prices higher, reversing part of Monday's substantial sell-off. The administration had sought to limit expectations of an active conflict ahead of the midterm elections.

Vice President JD Vance discussed the diplomatic outlook during an interview with CNN, expressing confidence in the possibility of negotiations.

"The prospect of potentially coming to a negotiated settlement," Vance said when discussing the situation with Iran.

Meanwhile, political developments in Washington remained a major consideration for investors as Americans voted in the midterm elections. CNBC examined the potential consequences for defense, healthcare, cryptocurrency and artificial intelligence companies with significant exposure to federal policy.

Historical market performance has generally favored periods of divided government, according to CNBC's election analysis. The results could influence expectations for corporate policy, regulation and government spending.

Separately, North Korea rejected allegations connecting Pyongyang to an estimated $6.3 billion cryptocurrency theft involving Binance. State media reported that Kim Yo Jong, sister of North Korean leader Kim Jong Un, criticized the FBI's attribution of the incident to the North Korea-linked hacking group TraderTraitor.

Kim described the accusation as a "grave political provocation," according to South Korea's Yonhap News Agency, citing the Korean Central News Agency.

Blockchain analytics companies Elliptic and Chainalysis have also linked the attack and subsequent movement of stolen funds to actors associated with North Korea.