Apple surges to the top with its best day since 1998
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Apple stock soared 15% in a single trading session, marking its strongest performance since 1998 and reclaiming its crown as the world’s most valuable company. With a closing price of $198.55, Apple’s market capitalization surged past $3 trillion, pushing Microsoft back to second place despite the latter’s solid 10% gain. The trigger for the rally was President Trump’s announcement of a 90-day suspension on most tariffs, paired with a reduction in reciprocal duties to 10%. However, the move came with a sharp escalation in tariffs on China, which now face a total levy of 125%.
Despite the market’s enthusiasm, the underlying issues remain far from resolved. Trump reiterated his desire to see the iPhone manufactured in the United States and intensified his rhetoric against Beijing, which responded by raising its own tariffs to 84%. With approximately 90% of iPhones currently produced in China, any serious move toward reshoring production would carry massive costs and complications. Analysts estimate that shifting production to the U.S. could more than triple the iPhone’s price, taking it from $1,000 to over $3,500, not to mention the years required to build facilities, train staff, and restructure supply chains.
This sharp rebound appears to be driven more by market sentiment than by any real improvement in Apple’s fundamentals. Investors seem hopeful that the current standoff with China will soften, but the structural challenges are significant. For now, Apple has regained its leadership position in the market, offering a tactical buying opportunity amid broader optimism. Going forward, the key variables to monitor will be the evolution of U.S.-China trade relations, Apple’s supply chain strategy, and how investors react to the potential for higher costs and prolonged operational shifts.
Despite the market’s enthusiasm, the underlying issues remain far from resolved. Trump reiterated his desire to see the iPhone manufactured in the United States and intensified his rhetoric against Beijing, which responded by raising its own tariffs to 84%. With approximately 90% of iPhones currently produced in China, any serious move toward reshoring production would carry massive costs and complications. Analysts estimate that shifting production to the U.S. could more than triple the iPhone’s price, taking it from $1,000 to over $3,500, not to mention the years required to build facilities, train staff, and restructure supply chains.
This sharp rebound appears to be driven more by market sentiment than by any real improvement in Apple’s fundamentals. Investors seem hopeful that the current standoff with China will soften, but the structural challenges are significant. For now, Apple has regained its leadership position in the market, offering a tactical buying opportunity amid broader optimism. Going forward, the key variables to monitor will be the evolution of U.S.-China trade relations, Apple’s supply chain strategy, and how investors react to the potential for higher costs and prolonged operational shifts.