New York, February 20, 2026, 10:03 a.m. EST — Regular session
- Apple stock slipped again in early trade, following Thursday’s decline, as investors sized up new legal threats alongside a more hawkish rate path.
- West Virginia has taken Apple to court, accusing the company’s iCloud service of facilitating the distribution of child sexual abuse material. Apple has denied the allegations.
- Traders eye risks tied to the U.S. tariff ruling, inflation pipeline data set for next week, plus Apple’s press event slated for March 4.
Apple slipped another 0.4% to $259.49 in Friday morning action, deepening a retreat that had already left the iPhone giant as the S&P 500’s biggest weight the previous session. (Reuters)
Investors are pulling back on hopes for U.S. rate cuts after inflation figures overshot forecasts, while disappointing growth numbers are stirring more anxiety. Megacaps, feeling the squeeze again, are under pressure—and Apple faces a fresh legal hurdle this time around. (Reuters) Source: Reuters
West Virginia’s attorney general filed a lawsuit against Apple on Thursday, alleging the tech giant let iCloud be used for sharing child sexual abuse material. Attorney General JB McCuskey accused Apple of choosing to prioritize user privacy over child protection. (Reuters) Source: Reuters
Apple says it’s rolling out new safety features for kids and continues to “innovate every day” as threats shift, according to a statement cited in the lawsuit report. The company also plans to broaden its “Report to Apple” tool in the U.S. in the coming weeks, allowing users to flag nudity. Apple emphasized this move isn’t tied to the West Virginia case. (Reuters)
The lawsuit puts end-to-end encryption back in the spotlight, challenging whether tech platforms ought to scan for illegal images despite the system’s promise that only sender and recipient can access the contents. “This is a clear attempt,” according to Electronic Frontier Foundation privacy advocate Thorin Klosowski, “to mandate that Apple search the private files of every iCloud user.” (Reuters)
Apple’s bid to expand its services business got a modest boost Thursday after Apple TV inked a distribution pact with EverPass Media, according to EverPass. The deal pipes Apple’s live sports lineup into bars, gyms, hotels, and restaurants. EverPass CEO Alex Kaplan called Apple’s sports offering a move that “strengthens and diversifies” its content library. (Reuters) Source: Reuters
Apple shares bounced from $258.30 up to $261.55 in early Friday action. The stock had ended Thursday at $260.58, market data show.
Lately, macro factors have taken the spotlight. The Federal Reserve’s go-to inflation metric, core PCE, increased 0.4% in December, up 3.0% from a year earlier, Reuters said. Both figures topped estimates and have traders now betting the Fed holds off on rate cuts until at least June. (Reuters) Source: Reuters
U.S. gross domestic product expanded at just a 1.4% annualized rate in the fourth quarter, undershooting projections. Reuters pointed to lingering effects from last year’s government shutdown and weaker consumer spending as the main culprits. (Reuters) Source: Reuters
“Lower growth and higher inflation is not a good combination for the stock market,” Steve Wyett, chief investment strategist at BOK Financial, said in comments to Reuters. (Reuters)
Right now, Apple faces a near-term risk that the lawsuit could morph into a bigger battle over its approach to privacy versus safety — a sensitive area for a company that markets security as a selling point. Any mandated shifts might mean higher costs, new hurdles for users, or a hit to Apple’s reputation, depending on which narrative gains traction. (Reuters)
With today’s session winding down, investors are eyeing a handful of key events ahead: a Supreme Court decision on U.S. tariffs that, according to Reuters, is squarely on the market’s radar; next Friday’s Producer Price Index release; plus Apple’s March 4 product event, set for New York, London, and Shanghai, which has been making the rounds online. (Reuters) Source: 9To5Mac
