The fortunes of Apple, the world’s largest public company, have a significant impact on the stock market as a whole. Last week, the tech giant’s struggles resulted in widespread declines in various sectors. However, investors can now find solace in recent developments.
After falling 6% last week amid reports of a ban on iPhone usage among government workers in China, shares in Apple (ticker: AAPL) have rebounded slightly, rising 0.8% in premarket trading. Concerns had arisen that these bans could expand and further affect the company’s performance.
Given Apple’s significant weighting in the S&P 500 index, its troubles had a profound effect on the overall stock market. The tech-heavy Nasdaq index experienced notable losses, particularly among groups exposed to China.
Fortunately, the situation appears to be improving. Investors are now shifting their focus to the upcoming launch of the latest iPhone and gradually looking past the recent concerns regarding China. This positive shift provides temporary relief for investors, as a stabilization or reversal of Apple stock’s recent losses is beneficial for the entire market.
Raffi Boyadjian, an analyst at broker XM, noted that Apple’s forthcoming iPhone reveal is generating significant buzz in the market. Boyadjian also suggests that traders may have overreacted slightly to China’s ban on iPhone usage among government employees. This move was interpreted as a response to growing trade barriers imposed by Washington on Beijing.
Looking ahead, futures tracking the S&P 500 and Nasdaq indexes indicate gains in premarket trading. The Nasdaq index, in particular, is poised to rise by 0.6%. Other tech stocks, especially those exposed to China, are also experiencing positive momentum. Tesla (TSLA) and Nvidia (NVDA), which both experienced declines over the past five days, are now showing signs of recovery. Tesla shares have risen by 7.1% following an upgrade by Morgan Stanley, while Nvidia shares have climbed by 0.6%.
In conclusion, the market can find reassurance in the recent developments surrounding Apple. The anticipation for the new iPhone release and diminishing concerns about China are contributing to a more positive outlook. As Apple’s stock stabilizes, the whole market can benefit from this encouraging trend.