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Apple Hits Sky-High Shares Amid Tech Stock Rally

December 14, 2023

Wednesday saw a record-breaking performance for Apple Inc. as its shares closed at an unparalleled high. This achievement is attributed to an expansive surge in tech stocks, fuelled by speculations of impending rate cuts by the Federal Reserve as the monster of inflation begins to retreat.

Apple’s Stellar Performance

Apple’s shares took a 1.7% leap to hit $197.96, toppling its previous record set in July. This impressive run sees the stock up by 52% for the year, amounting to a market capitalization of nearly $3.08 trillion. This firmly establishes Apple’s reign as the world’s most valuable company.

During the past month, Apple has been riding high along with other tech stocks as U.S. Treasury yields have taken a dip. This comes in the wake of indications that inflation is finally on a downward slope, and the economy is retaining its robustness. These sentiments were strengthened on Wednesday as central bankers decided to maintain steady interest rates for the third consecutive meeting, with a projection of a series of cuts in the upcoming year. The 10-year Treasury currently hovers around its lowest since August and is on the brink of dipping below 4%.


Turnaround for Apple

Apple’s recent triumph marks a significant turnaround from the situation in October when the stock hit a five-month low. The fears regarding China sales and revenue growth had cast a shadow over the company.

Fiscal 2023 witnessed a consistent decline in Apple’s revenue each quarter compared to its performance the previous year. A recent forecast predicted stagnant sales in the holiday quarter compared to last year, leaving some investors underwhelmed. However, current viewpoints from Wall Street project a revamp in Apple’s revenue growth by 2024. This positivity comes from expectations of increased demand for smartphones, laptops, and computers.

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