NEW YORK: Apple became the first $1 trillion publicly listed US company on Thursday, leading a rebound in technology stocks and pushing the benchmark S&P 500 and the Nasdaq higher.
Market sentiment was also lifted by Commerce Secretary Wilbur Ross’s comment, who said the tariffs that United States is threatening to impose on Chinese goods would not be disastrous for the Asian nation.
“It’s not something that’s going to be cataclysmic,” he said in an interview with Fox Business Network, explaining that a 25 per cent tariff on $200 billion worth of goods would equal to less than 1pc of China’s economy.
“There’s optimism now that the US style of threatening tariffs may ultimately come to fruition in a deal,” said Brad Neuman, director of market strategy at Alger, a growth equity asset management firm in New York City.
Technology stocks, which were trading lower earlier in the session, rose 1.03pc.
Apple jumped 2.8pc to a record $207.05 to hit the $1tr mark, crowning a decade-long rise fueled by its ubiquitous iPhone that transformed it from a niche player in personal computers into a global powerhouse spanning entertainment and communications.
“It’s a good sign for the market and the economy. Even though today we’re talking about the impact of trade or currency war, an issue with China, Apple who makes most of their products in China is hitting this,” said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh.
Published in Dawn, August 3rd, 2018