Global stocks retreated from record highs on Wednesday as Apple’s earnings were comprehensively disappointing, and the dollar strengthened as investors waited patiently to hear the Federal Reserve’s take on another soft patch in the American economy.

European markets were in the red after a reading of Eurozone activity came in as expected, with GDP figures rising 0.5% in the first quarter of 2017. Investors were also erring on the side of caution ahead of the latest rate decision from the US Federal Reserve, due after European markets finished trading. Basic resource stocks led declines, amid a slide in metals prices. Copper futures tumbled, bringing mining giants Centamin, Antofagasta and Fresnillio down with it.

US equities also lost ground on Wednesday as weaker-than-expected iPhone sales from Apple, the world’s largest company by market value, knocked the Nasdaq composite from a record high. Apple lost 1.8% in pre-market trade, sending the technology stock tumbling.

UK supermarkets struggle

Shares of J Sainsbury posted one of the biggest losses, tumbling 5.51% during Wednesday’s session. Shares in the supermarket giant sank following a report that the company has cut its dividend by 16%, and also posted a 0.6% in full year like-for-like sales.

The top four UK supermarkets, Sainsbury’s, Tesco’s, Asda and Wm Morrisons all lost market share to German low-cost retailers Aldi and Lidl in the first three months of the year, even as their sales got a boost from spending on Easter eggs and hot cross buns, a report noted.

Shares in Tesco fell 3.39% and Wm Morrison dropped 1.24%.

Apple iPhone sales disappoint

Apple’s disappointing results slowed a torrid advance in technology shares that have lifted major equity benchmarks to records and overshadowed economic data that shown the US economy got off to a tepid start to the year.

The tech giant said iPhone shipments totalled 50.8 million units in the previous quarter, below the expected 52 million. That being said, the company reported a mixed quarter overall, with adjusted earnings per share topping analyst expectations while revenue fell just short. Apple shares slid 1.5% during Wednesday’s session.

Despite this disappointing result, the earnings season has been strong so far. More than 75% of the companies having reported so far have beat profit estimates, and around 70% of them also topped sales forecasts.

Fed ahead

Later in the day, attention turned to the US where the Federal Reserve concluded its two day policy meeting. The Fed gave a positive assessment of the US economy while keeping rates unchanged, as widely expected. Market expectations for a rate hike next month jumped to 75% according to Wells Fargo.