What Happened?
Shares of iPhone and iPad maker Apple (NASDAQ: AAPL) jumped 2.8% in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
After the initial pop the shares cooled down to $200.40, up 2.6% from previous close.
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What The Market Is Telling Us
Apple’s shares are extremely volatile and have had 34 moves greater than 2.5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 2.8% on the news that tariffs and trade tensions picked up after President Trump announced plans to impose up to 25% tariffs on iPhones sold in the US unless the company moved manufacturing back home.
The proposed tariffs underscore a renewed focus on domestic manufacturing. Moving production back home on short notice could be a challenge, especially for a company as big as Apple, as it involves redesigning complex production networks, which can be expensive and time-consuming.
Apple is down 17.8% since the beginning of the year, and at $200.40 per share, it is trading 22.6% below its 52-week high of $259.02 from December 2024. Investors who bought $1,000 worth of Apple’s shares 5 years ago would now be looking at an investment worth $2,520.
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