Apple shares suffered their biggest decline since August on Tuesday, due to trade tensions between the United States and China.
President Trump told reporters that he had “no deadline” on agreeing a trade deal with China. Many people had hoped that a deal could be reached within weeks.
“Apple continues to be in the crossfire” of the trade war, noted Wedbush analyst Dan Ives. He said that Apple, more than other companies, has “the most to lose if this tariff war does not see a truce going forward.” Approximately 17% of Apple’s revenue comes from China.
Apple shares declined by up to 3% on Tuesday, eventually finishing the day down 1.78% at $259.45.
Before you start panicking, however, Apple is still up a whole lot this year. It began the year trading at $157.92. Earlier this week, I wrote about how Apple is worth more than all large-cap US energy stocks put together. Even with Tuesday’s decline, Apple’s current market cap is around 1.173 trillion. That surpasses the value of the S&P 500 energy sector, valued at $1.12 trillion.
However, within this larger stories there are ups and downs. This year alone Apple has already been the recipient of a “death cross” and a “golden cross.” You don’t have to be an economics major to figure out which of those is good and which is not so great.
Overall, though, Apple continues to go up. And it’s taking its suppliers along for the ride, too.
Source: Bloomberg
