Apple stock finally claws back some losses following mixed Trump tariff message

AppleInsider

After multiple painful days, Apple stock has finally enjoyed some recovery, finishing the day up after President Trump delivered a mixed message for the iPhone maker on the tariff situation.

Apple's shares had a good day on Wednesday

Tuesday's stock market activity saw Apple close the day at $172.87, down more than 5%. This gave it a bad starting point for Wednesday, with the prospect of more pain to come.

Following some negative pre-market trading down to around $169, which came back up to $172.18, Apple enjoyed a brief $3 boost at the start of the day.

Even so, Apple was bracing itself for another day of potential turmoil. This was in part due to China deciding to increase its tariffs on U.S. imports into the country, retaliating against increases by the U.S.

Following that auspicious start, Apple's stock continued to hover around the $178 level, before an announcement by President Donald Trump. A 90-day pause on tariffs affecting more than 75 countries will be in place, due to a willingness to negotiate with Trump on the matter.

The pause will also mean that the reciprocal tariff applied to the countries will be set at 10% for the 90-day period.

At the same time, following China's latest retaliatory tariff increase in response to Trump's rise to a 104% rate, the tariff went even higher. Instead, imports from China will be affected by a 125% tariff with immediate effect.

The move was welcomed by the stock market, which saw an immediate jump of 7% on Nasdaq and a 2,000-point surge for the Dow.

An Apple bounce-back

Like the rest of the stock market, Apple saw a massive improvement on its stock price after Trump's announcement. The price quickly rose to a peak of $194.87 by 2 p.m. eastern, with the price hovering around the new level for the rest of the session.

The stock closed at $198.85, up a whopping 15.3% from Tuesday's closing level.

While this is a resurgence of the stock price, it's nowhere near the week-ago level of $223.89 from April 2. That said, it took a week and four trading sessions to reach Tuesday's low point, and it could take a lot longer for Apple to properly recover.

The increase does help the market cap, which is now at $2.99 trillion. This was a bit more than enough to retake the crown of the biggest U.S. company from Microsoft, even though its historic rival also saw its share price and market capitalization surge through the day.

It is very likely that investors are happy to see tariffs in countries other than China being reduced. This is because Apple can use its expanded supply chain outside of China to handle U.S. shipments at a far lower tariff rate than the Chinese equivalents.



Read on AppleInsider

notsomuch

Well, the US is not the only market for Apple to sell their products. 

danox

NotSoMuch said:

Well, the US is not the only market for Apple to sell their products. 

Win-win for all the other countries outside the United States Apple along with many other American companies will need to be more cooperative overseas…. The dumbest man in the White House has make sure that.

blastdoor

An important concept to be aware of:

https://www.investopedia.com/terms/b/bear-market-rally.asp

danox

blastdoor said:

An important concept to be aware of:

https://www.investopedia.com/terms/b/bear-market-rally.asp

Don’t disagree with anything that was said on that webpage however, I think we’re in new territory what happens when one country out of the blue decides it’s going to take on all of the other economies of the world alone by itself? With the added cherry on top of stabbing two very friendly trading partners just to the north and just to the south, one country supplies, you with oil and gas at a significant discount under the world market price, and the other supplies, you with a significant amount of the food you need to eat along with large amounts of industrial support cross several industries, note, that also applies to your northern partner too. 

The rest of the world will trade around the United States. They pretty much trade around Russia currently, and Russia is not getting stronger with their fiasco/war with the Ukraine which they started, in fact they are getting weaker.

lloyddean

Quite the opportunity for Trump and friends to manipulate the market  and profit by buying low and selling high at a later time.

entropys

Hope all the shorts took a bath.

entropys

danox said:

blastdoor said:

An important concept to be aware of:

https://www.investopedia.com/terms/b/bear-market-rally.asp

Don’t disagree with anything that was said on that webpage however, I think we’re in new territory what happens when one country out of the blue decides it’s going to take on all of the other economies of the world alone by itself? With the added cherry on top of stabbing two very friendly trading partners just to the north and just to the south, one country supplies, you with oil and gas at a significant discount under the world market price, and the other supplies, you with a significant amount of the food you need to eat along with large amounts of industrial support cross several industries, note, that also applies to your northern partner too. 

The rest of the world will trade around the United States. They pretty much trade around Russia currently, and Russia is not getting stronger with their fiasco/war with the Ukraine which they started, in fact they are getting weaker.

Only trouble with that theory is that for the rest of us, the USA actually dominates the world market. Russia is nothing.  Many countries, including my own, impose tariffs and non trade barriers on all sorts of stuff from the USA, so there actually is a bit of a case for the USA to finally do something about it. All at once is a bit of a shock to people used to things going their way. 

Like my country because the yanks have been too nice to retaliate.