Apple just hit a major bump in the road. The company’s stock plunged 5% on Thursday, marking its worst day on the market since last April. That sharp drop erased all the gains the iPhone maker made this year, leaving the stock down nearly 4% for 2026. Two big problems triggered the sell-off: a delayed AI rollout and sudden pressure from the government.
First, the long-awaited artificial intelligence update for Siri isn’t arriving as soon as people hoped. Investors expected Apple to launch these new features within a few weeks. However, Bloomberg reported on Wednesday that the company internally pushed the release back to May or potentially even later. Instead of a big immediate release, Apple may roll out the features slowly over several months.
While Apple told they are still on track for a 2026 launch, the report made traders nervous. Apple needs a smarter Siri to keep up with competitors, and any delay looks bad to Wall Street.
Second, political heat is rising. On Wednesday, Federal Trade Commission (FTC) Chair Andrew Ferguson contacted Apple CEO Tim Cook directly. He told Cook to review the policies for Apple News. Ferguson pointed to reports suggesting the app promotes left-leaning news outlets while burying conservative content. This regulatory scrutiny adds another layer of risk to the company.
These issues hit at a tricky time. Apple actually beat earnings expectations last month, but the mood on Wall Street is shifting. Investors are starting to worry that big tech companies are burning too much cash on AI development without showing quick returns. Just this Tuesday, UBS downgraded the U.S. tech sector, citing “software uncertainty.”
Between the expensive AI race and the new delays, investors decided to play it safe. The combination of spending fears, product pushbacks, and regulatory questions sent traders running for the exits on Thursday.
