Apple, other tech stocks power S&P 500 to record high amid inflation concerns

The S&P 500 notched its third straight record high on Thursday, with mega-cap technology stocks taking charge, as investors considered the specter of U.S. inflation.

Why Apple stock is struggling

Reuters:

Apple Inc, Microsoft Corp, Amazon.com , Google parent Alphabet Inc and Facebook Inc , which account for a quarter of the S&P 500’s market capitalization, led shares on the S&P and tech-heavy Nasdaq.

Tesla Inc, Nvidia Corp and Moderna Inc also rallied on a day in which more stocks declined than advanced.

Traders snapped up shares that had missed out on the overall market marching higher the past week, according to Tim Ghriskey, chief investment strategist at Inverness Counsel.

“The move into big tech is simply a trading opportunity. Big tech has been down for a week or so, underperforming the market pretty significantly,” Ghriskey said. “There are bargain hunters coming in, jumping on those securities.”

Apple added the most to the S&P, rising [2.07%], followed by Microsoft with a [0.98%] gain and Tesla adding [1.58%].

Data showed U.S. producer prices posted their largest annual increase in more than a decade last month, raising inflation concerns, after Wednesday’s U.S. consumer price index reading indicated the pace appeared to be slowing.

MacDailyNews Take: Again, it’s best to get a handle on inflation, if you know how, while you still can.

Inflation is repudiation. — Calvin Coolidge

When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan

5 Comments

    1. Inflation hurts most those in lower income brackets…both because of the increased cost of goods, but also because of higher taxation that is needed to cover the “we don’t have the money” spending and the Fed’s “money creation.”

      Economic disparity is often, rightfully bemoaned, but many that do so aren’t aware, or deny that debt-spending and the MMT paradigm, necessarily results in inflation and currency devaluation…again hurting most those with less to spend.

  1. I was surprised to see Apple stock move without a catalyst. It’s nice to see the stock move upward but I’m willing to wait until year’s end while Apple is buying back outstanding shares which is very important to Apple’s overall value. Apple focuses so much on buybacks, so I want to see Apple get the most bang for the buck.

  2. The Black Death caused inflation. The value of gold dropped dramatically in 14th century western europe. It was the same amount of gold chasing fewer workers and their products. They actually had maximum wage laws at one point, to protect the nobility. But of course this proved unenforceable. In the long run, the Black Death lead to great progress in civil rights for ordinary people. It also explains why eastern europe lagged behind in eliminating feudalism. The plague had a much milder effect there.

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