Apple’s march to the world’s first $3 trillion valuation carries virus-risk warning for the broader market.
Kriti Gupta for Bloomberg News:
Apple Inc., whose shares serve as a real-time proxy for risk sentiment toward the pandemic, is near a $3 trillion market capitalization. If history is any guide, that milestone may signal a technical correction is ahead, for both the stock and the broader market.
When the iPhone-maker reached $1 trillion in market cap, a roughly 40%, months-long drop in the share price followed. At the $2 trillion mark, the stock faced a bear market with a 20% slump over a period of weeks.
The ripple effect in those episodes went beyond just Apple. Huge gains in big tech stocks tend to drive the S&P 500 to record highs, with the benchmark potentially setting its 70th record close for the year today. But those market drivers can spur big selloffs too.
Technovanguard Note: For Apple to hit the $3 trillion market cap milestone, its share price would need to reach $182.86.
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