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Apple hits all-time high, nears $3.176 trillion

Apple hits all-time high, nears $3.176 trillion

Apple high

Apple’s stock soared on Tuesday, closing at an all-time high of $207.15. The company added $215 billion to its market cap in a single day. This surge put Apple’s market cap at $3.176 trillion, just short of retaking the top spot from Microsoft.

The breakout in Apple shares targets the $238 level. The stock’s Relative Strength Index poked above 70, and the daily Moving Average Convergence Divergence set up more bullishly than it had in a month. The 50-day simple moving average is nearing a “golden” crossover of the 200-day SMA.

Apple supported both the S&P 500 and Nasdaq Composite, as both indexes closed at all-time highs again. The S&P 500 gained 0.27%, while the Nasdaq Composite increased by 0.88%. However, the rest of the market was not as strong.

Small-to mid-cap indexes closed in the red, as did the Dow Transports. Banks also took another beating due to rising delinquency rates for commercial real estate and consumer loans. Despite the headline-level equity indexes closing in the green, nine of the 11 S&P sector SPDR ETFs closed in the red.

Technology was the obvious upside leader, gaining 1.85%. The Dow Jones U.S. Computer Hardware Index, which includes Apple, gained 6.63%.

Apple stock hits record highs

Market breadth was mixed, with losers beating winners at both the NYSE and Nasdaq. The S&P 500 has been closing at record highs on a daily basis, yet the equal-weight S&P 500 is nowhere near doing so. The gap between the two has been exacerbated, especially since the start of June, illustrating the disparity in the performance of market segments.

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It’s May CPI Day and also a “Fed Day on steroids.” In addition to a policy statement and a press conference, an update on the FOMC’s economic projections, including the infamous “dot plot”, will be provided. The dot plot will give the public an idea of the year-end target for the Fed Funds Rate. The CPI report is also crucial, but the Fed’s projection for the Fed Funds Rate is of utmost importance for today’s market actions.

Oracle’s stock popped overnight as less-than-spectacular fiscal fourth-quarter performance was overshadowed by upbeat guidance and the announcement of a partnership with Alphabet to integrate Oracle Cloud infrastructure with Google Cloud technology. Paramount Global fell off a cliff late Tuesday afternoon as reports circulated that Shari Redstone had called off discussions with Skydance Media about a possible merge or deal. Reports indicate that G-7 leadership will soon announce a plan to unlock the value of frozen Russian assets, estimated around $50 billion, to aid Ukraine.

The U.S. is also considering imposing additional restrictions on China’s access to high-end chip technology for generative AI purposes. On Tuesday, the U.S. Treasury Department auctioned off $39 billion worth of new 10-Year Notes with strong results, one day ahead of the Fed meeting. The high yield awarded was 4.438%, with a strong bid-to-cover ratio of 2.67.

Foreign accounts took down 74.5% of the auction, while domestic accounts took home just 13.8%, leaving dealers holding the lowest percentage since last August. All this sets the stage for today’s performance with the CPI release at 08:30 ET and the Fed’s decision and economic projections at 14:00 ET. Stay alert and stay ready as the market volatility persists.

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