In the last couple of sessions, Apple (AAPL) has traded on a mixed to slightly negative note. On June 13, Apple stock settled without any notable change from its previous session’s closing price despite the broader market’s positive movement.
The S&P 500 Index and the Nasdaq Composite Index rose 0.4% and 0.6%, respectively, yesterday. Among other tech stocks, the Walt Disney Company (DIS), Western Digital (WDC), Intel (INTC), International Business Machines (IBM), and Microsoft (MSFT) rose 4.4%, 3.0%, 0.8%, 0.7%, and 0.6%, respectively, on June 13.
Why has Apple’s rally halted?
Earlier this month, US-China trade tensions kept investors worried about the future of US businesses that have invested heavily in China in the last few years. From June 4 to June 11, Apple stock rallied for six days in a row. During this period, the stock rose 12.4%, while the S&P 500 benchmark inched up 5.1%.
Apple held its Worldwide Developers Conference last week. During the event, it made several announcements, including those about the iOS 13, the watchOS 6, the tvOS 13, the iPadOS, the macOS Catalina, and the third generation of the Mac Pro. These announcements boosted investors’ confidence and helped AAPL outperform the broader market.
Investors might not ignore the potential risks the ongoing US-China trade war poses to Apple for too long, though. A rise in profit-booking by conservative investors after Apple’s recent stock price rise could be one of the reasons why its rally has halted in the last couple of days.