Apple Inc. jumped the most in three weeks after the U.S. and China declared a trade truce over the weekend, relieving the iPhone maker of some of the pressure its growth outlook faces in the event of a prolonged conflict.
The shares gained as much as 3.3%, contributing the most to a rally that’s pushing the S&P 500 Information Technology Index toward a record high. Apple is bouncing back from a drop of as much as 18% after the latest flareup in early May.
The trade truce removes “the albatross” that has been around Apple Chief Executive Officer Tim Cook’s neck, and the shares could add as much as $25 as a result, Wedbush analyst Dan Ives wrote in a research note. Based on Apple’s Friday close, such a gain would return the company’s market valuation back above $1 trillion.
Over the weekend, President Donald Trump said would hold off imposing an additional $300 billion in tariffs and the world’s two largest economies agreed to resume negotiations.
MacDailyNews Take: Apple’s share price is back up over the $200 psychological hurdle!