Today was an interesting day in the market- Both the Dow Jones and S&P fell, while the NASDAQ rose- tech giant Apple along with Amazon entered the NASDAQ-100, with Apple rising around 3.16 percent. Other major moves included Amazon and Microsoft- all three near their all time high. Apple only around 1.5 points away, Amazon and Microsoft around 26 and 1 point away, respectively. These tech giants were just part of the rally that pushed the NASDAQ to a new high, despite the red that surrounded it in US Markets. As always, let's break it down.
"Mac Chip" and WWDC
For those who don't know, WWDC is Apple's namesake annual conference where they showcase their new technology and software for those attending (there will be no audience this year), and those watching the stream. Rumors of Apple moving away from their Intel Chips and using their own ARM-Based "Mac Chips" are hoped to be confirmed at this years WWDC. These types of chips are smaller and more lightweight, so it's possible yet unconfirmed that they may release a "Mac Chip" based MacBook laptop. According to DigiTimes, Apple plans to start production of the iPhone 12 in July, while they finish the "testing" phase throughout June.
Is that why Apple stock went up?
Well, yes. On the rumor of this news, investors bought into Apple. Apple's WWDC is an esteemed event, looked forward to by customers, investors, software developers, and even the media. Furthermore, Apple's stock rose 15 points just days before WWDC 2019- from about 175 points, to 190 points. Why? When there's rumors of such a dominant company with a market cap of its caliber, people buy. So- collectively - The iPhone and native Mac-Chip rumors drove Apple's stock to an all-time high, driving the post-virus NASDAQ to reach over 10,000 for the first time in history. Keep in mind, for every rise there's a fall, and for every fall there's a rise (there are some exceptions, like a company going out of business, but usually the rule stands true.) After WWDC, Apple stocks experience a large selloff.
Apple seemed to be all over the headlines today, but another major move was Amazon. By now, it's no secret that this tech giant soared during the pandemic, with the convenience of simply clicking your mouse and placing an order, and having that item be delivered to your doorstep. But the answer to why Amazon rose today is not as simple as that. The E-Commerce market has grown 83% in May, Amazon recently hired around 175,000 employees, and as the second quarter comes to a close at the end of the month, Amazon looks to have performed better than expected. (Source: Market Watch.)
Here are the 5-day charts of Apple and Amazon, thanks to Google Finance. Be sure to notice the rise over the past five days, especially the steep rise in Apple, after the rumors and WWDC anticipation.
(Source: CNBC News)
All three major US markets point upwards, the NASDAQ continuing it's rally, and the DOW and S&P look to recover from the disappointing losses today. Investors await the next update on the economy from the Feds- this will truly determine the path of the market, whether it be positive or negative, in this booming post-virus economy.
Summary: Apple and Amazon experienced steep rises today after Apple begins iPhone testing, and possible confirmation of using their own chips instead of Intel, amid WWDC Anticipation. People should keep in mind that historically, there is a selloff in Apple stock after WWDC. Amazon rose after second quarter earnings are predicted to rise more than projected, especially after the growing E-commerce industry. Futures point upwards, the NASDAQ continuing its' rally, the DOW and S&P look to rebound.
If you enjoyed this article, subscribe to BizRoca to stay on top of all the important stories- 100% free, 100% unbiased and real news. And don't forget to share with your friends!