(Bloomberg) — Apple Inc.’s earnings Thursday now carry the burden of trying to turn the tide for technology stocks after the Federal Reserve’s signal of faster rate hikes made investors skittish.

Any less than top-notch earnings results could disappoint shareholders. This year’s stock performance has outperformed peers by only 10%, while its is 13% higher. Apple could also be further from becoming the first company to reach $3 trillion, which was a goal that Apple reached just a few short weeks ago.

“The risk is that the current market backdrop appears to be only rewarding near flawless execution and results,” said Cowen analyst Krish Sankar. The Nasdaq’s rout is the worst-ever start to the year for the tech-heavy benchmark.

The iPhone maker’s ability to navigate supply chains roiled by a parts shortage and Covid-19 will be an area of focus, analysts say. Apple lost $6 billion due to these snags in fiscal fourth quarter sales. Chief Executive Officer Tim Cook said at that time that it would suffer even more in the first quarter. This was just before the global epidemic caused by the omicron variant. 

With predictions for rising interest rates putting pressure on valuations, it’s critical that technology companies beat earnings estimates that are rising, according to DataTrek Research co-founder Nicholas Colas. “Flat/middling earnings revisions is not enough.”

Tesla’s earnings Wednesday are a good example of how a regular beat alone might not get rewarded. Although Tesla’s quarterly profit and revenue beat Wall Street expectations, the stock plummeted 2% when Tesla (NASDAQ: ) stated that there are supply chain problems which could be limiting sales.

Apple shares (NASDAQ.) are now up 15% over Oct. 4. This suggests that the upside from first-quarter results may already be priced in. Moreover, its projected earnings of $1.90 a share on revenue of $119.1 billion for the December quarter is a significant downshift from last year’s booming growth. 

Naturally, upside is possible. Microsoft Corp .’s  (NASDAQ:) strong earnings this week lifted a group of beaten-down software stocks Wednesday — at least until Fed Chairman Jerome Powell jolted the market with his more hawkish tone.

Tech Chart of the Day

In Hong Kong, the Tech Index fell 3.8% to a low of almost 5% following the Fed decision. The index that has been roiled by Beijing’s regulatory crackdowns over the past year is now caught in a broad selloff in tech stocks.

Top Tech Stories

• Samsung Electronics (OTC) has increased its spending on chipmaking technology to meet growing demand for smartphones, displays, and memory products.
• Intel (NASDAQ:) gave a disappointing forecast for profit in the current quarter, fueling concern that the cost of CEO Pat Gelsinger’s turnaround plan will weigh heavily on the chipmaker’s financial performance
• SoftBank was among the most-significant victims of a selloff of tech stocks across Asia on Thursday, with investors turning sour on billionaire Masayoshi Son’s firm as the tightening phase of central bank policies emerges
• Apple was China’s top-selling smartphone brand in 2021’s final quarter, industry research showed, taking the top spot in the world’s largest mobile market for the first time since 2015
• Tesla posted a record profit but cautioned that it will not be able to introduce new vehicles models this year due to supply chain problems
• According to sources familiar with the matter, cloud content security company Egnyte plans to make its public debut as early as this year.

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