Apple Stock Hits a Fresh All-Time High Amid a Tech Selloff
Apple stock hit a fresh closing high Tuesday while broader markets, tech included, were selling off on increased growth concerns..
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- Apple stock hits an all-time high Tuesday while other tech giants drop on growth concerns
- Cryptocurrencies tick higher, Ether rallies 10% to hover just below its record high of $4,860
What’s Moving in the Markets?
Apple stock rallied to a new all-time record on Tuesday amid a broader selloff in equities. Almost all sectors in the S&P500 finished in the red yesterday, joined by the Dow Jones and the Nasdaq Composite. In contrast, shares of Apple surged $5, or 3.16%, to hit a record close of $165.30.
In that context, Apple regained its number one spot as the world’s most valuable company. For a while, the first place was occupied by Microsoft, which is currently valued at roughly $2.5 trillion. Apple, on the other hand, now boasts a market capitalization of $2.7 trillion making it the most expensive company out there.
With this in mind, traders and investors flocked to shares of the iPhone maker in search of a safe place to put their capital. Apple has long been viewed as a safe haven among technology companies during times of uncertainty. Due to its strong cash flow, the company is able to withstand heavy headwinds such as the current selloff momentum.
What’s the Big Picture for Traders?
It’s important to note that Apple shares gained amid increased uncertainty following Fed Chair Powell’s comments. Jerome Powell, chief of the Federal Reserve, testified before US Senate on Tuesday. In his remarks, he emphasized growing inflation pressures and the possibility of earlier tapering.
In other words, the US central bank now considers inflation is here to stay. That became clear with Mr. Powell’s comments that it is now a good time to retire the word “transitory” in describing inflation. Moreover, he suggested the Fed should hurry up with its reduction of monetary stimulus.
“The economy is very strong and inflationary pressures are high,” he said. “It is therefore appropriate in my view to consider wrapping up the taper of our asset purchases… perhaps a few months sooner.” This means Fed officials are ready to unwind the $120 billion in monthly purchases by more than the initially planned $15 billion a month.
These topics will be discussed at the Fed’s regular meeting scheduled for Dec. 14-15.
What to Watch in the Markets?
Cryptocurrency trading appears to be taking off this week as major digital assets have pared back last week’s losses. Since bitcoin and Ether sold off Friday on Omicron fears, they’ve been in a consistent climb. Bitcoin, on the one hand, has gained about 7% since its low point over the weekend. Presently, the orange coin is trading near $57,300 per coin.
Ether, on the other hand, is ticking higher with every passing day. Over the past four days, the Ethereum coin has gained over 20%. Today alone, the second-biggest cryptocurrency is up about 3% to trade near $4,800. The level is less than 2% from the all-time high of $4,860.
Ether has gained a solid 10% since yesterday, while bitcoin is showing a loss of roughly 2% for the same period.
Economic Data Coming Up Today (EST times)
Traders and investors today will be following developments over the new Omicron strain and its effects on health and the economy. Also, Fed chief Jerome Powell appears before lawmakers for a second day today at 10:00 am.
Later, at 07:30 pm, Australia will publish its retail sales report for November. The release of the report could increase the volatility in the Australian dollar and the forex markets in general.
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