It was a sour day for stocks.
Apple shares shed 2% on Monday after a downgrade by analysts at Rosenblatt Securities, who predicted the stock could see up to another year of "deterioration." The move weighed heavily on the major averages including the Dow, which fell more than 100 points.
Experts, including analysts who cover Apple, worry there could be more pain ahead for both the stock market and the iPhone maker.
Here's what five of them said Monday:
J.P. Morgan's chair of global research, Joyce Chang, predicted two more rate cuts by the Federal Reserve this year in response to weakening economic data:
"We do think that the Fed's going to move twice, in July and in September, because the concerns on business sentiment are still lingering. Looking at the second-quarter data and even what we see for the third quarter, we still have some lingering concerns on capex and on business sentiment. … We see 25 basis points in July and in September."
Savita Subramanian, Bank of America Merrill Lynch's head of U.S. equity strategy, also didn't take the prospect of two rate cuts off the table:
"We do see trends in the economy that aren't necessarily consistent with an environment where the Fed would be able to stay on hold or even hike rates later this year. So, I think it's reasonable to expect two cuts this year."
Chris Caso, an analyst covering Apple at Raymond James, said the tech giant could see fundamental improvement, but not anytime soon:
"It's really driven by the iPhone cycle. Last year's cycle wasn't very compelling. This year's cycle, as we expect, it's not going to be very different. So, kind of more of the same this year. What we're hoping for as you go into 2020 is that perhaps 5G starts to be a catalyst for the shares. But you've got to get through the cycle first."
Tom Forte of D.A. Davidson, another Apple analyst, said the iPhone maker had some fixes to make before catching momentum:
"The way that I would think about the iPhone is, really, I think there's going to be a lot of pent-up demand for 2020 because the 2020 iPhone should have 5G. So, I think expectations going into this year should be pretty modest. And then, on the services front, the big opportunity for Apple is to diversify their revenue away from the 60% that they're generating in smartphones today."
MSA Capital managing partner Ben Harburg said that, in general, the U.S.-China trade war that's been weighing on Apple and U.S. stocks — and, in many ways, has fueled calls for a rate cut — could have a largely unexpected outcome:
"In the long term, this is all to China's benefit. I think the next couple years are going to be difficult as companies face uncertainty, but in the long term, as native industries are developed, as emerging technology markets are kind of cornered by Chinese technology companies, that's where the growth is going to be. And China's building product[s] for the next billion consumers better than, I think, U.S. businesses today."
