Apple continues plunge, but weaker dollar may bring salvation

Apple stock just suffered through its worst week since last February and is again on the downward move in Monday trading, but a weaker dollar may come to the stock’s rescue.

Kriti Gupta for Bloomberg News:

The tech giant hit a $3 trillion market capitalization on Jan. 3. Since then, the stock has lost 13%, while the S&P 500 has lost 11% with mega-cap tech shares taking a beating. The correlation isn’t new. Each time Apple’s market value has hit a trillion-dollar milestone, the broad market gauge has entered a technical correction. And a dollar slump has been the key to turning it around.
When Apple first reached a market cap of $1 trillion dollars in August 2018, it sparked a 20% technical correction in the S&P 500. It happened again two years later, as it breached the $2 trillion milestone and then helped fuel the tech wreck of 2020.
The logic isn’t complicated. In times of crisis or global uncertainty, major U.S. assets tend to be considered havens for international buyers. To stock-market investors, that means big tech… The point being, keep an eye on the dollar. As it weakens and gives foreign investors more incentive, the S&P 500 is likely to reverse the selling that has thus far marked 2022. And history says big tech, including Apple, will play a significant role in that.

MacDailyNews Take: Patience, Padawans. Good things come to those who wait.
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