The fortunes of Apple, the world’s largest public company, often set the tone for the rest of the stock market. Last week, Apple’s struggles contributed to widespread declines. However, investors can now breathe a sigh of relief as shares in Apple (ticker: AAPL) have shown signs of recovery.
After falling 6% last week due to reports of the Chinese government banning the use of iPhones among government workers and fears of wider bans, Apple’s stock rose 0.8% in premarket trading. The impact of Apple’s woes on the entire stock market was significant, particularly on the S&P 500 index and the tech-heavy Nasdaq index, both of which experienced losses linked to China.
Despite this, there is renewed optimism as investors turn their attention to the highly anticipated launch of the newest iPhone and start to look beyond concerns about China. If Apple’s stock can stabilize or reverse its recent losses, it would be a positive development for the overall market.
Analyst Raffi Boyadjian from broker XM suggests that the upcoming event surrounding the unveiling of Apple’s latest iPhone is generating buzz that could bolster the stock today. Boyadjian also believes that the reaction to China’s ban on iPhones for government employees might have been slightly exaggerated and seen as a retaliatory move against Washington’s trade barriers on Beijing.
As a result, futures tracking the S&P 500 and Nasdaq indexes are indicating gains in premarket trading. The Nasdaq index, in particular, is expected to rise by 0.6%. Tech stocks beyond Apple, especially those exposed to China, are also experiencing a boost, with companies like Tesla (TSLA) and Nvidia (NVDA) seeing an increase in their stock prices. Tesla shares rose 7.1% following an upgrade by Morgan Stanley, and Nvidia shares were up by 0.6%.
It seems that Apple’s fortunes are turning around, bringing hope and positive momentum to the stock market. The launch of the newest iPhone and the easing of concerns about China are contributing to this newfound optimism.
Jack Denton
