After starting June on a negative note yesterday, Apple (AAPL) is on a path of sharp recovery today. On June 3, its stock fell 1.0%, but it’s already up by over 3% as of 12:05 PM EDT today.
In the last month, the escalation in the US-China trade war has taken a huge toll on tech companies, including Apple, which is already struggling in the Chinese market due to lower iPhone demand. Let’s take a look at what could be driving the gains in Apple and other tech stocks today.
Trade tensions have eased
Earlier today, investors breathed a sigh of relief as Chinese officials seemed to advocate a softer approach to resolving US-China trade tensions. According to a CNBC report, a translated version of a statement by China’s Ministry of Commerce said, “The differences and frictions between the two sides in the economic and trade field will ultimately need to be resolved through dialogue and consultation.” The statement came as welcome news to global investors after weeks of tug-of-war between the two nations over trade.
The Fed is watching
More relief for US investors came today after Federal Reserve Chair Jerome Powell said, “We are closely monitoring the implications of [the United States’ ongoing trade tensions with other nations].” He continued, “We will act as appropriate to sustain the expansion [in the US economy].”
Netflix stock surged over 4%
Among today’s other top tech gainers, Netflix (NFLX) was trading with a 4.3% gain as of early this afternoon. Earlier today, Loop Capital upgraded its rating on Netflix to a “buy” from a “hold,” arguing that the company has a competitive edge in the subscription video streaming space.
Chip makers QCOM, Micron, and Intel rise
US chip makers Micron (MU), Intel (INTC), and Qualcomm (QCOM) were trading with 4.3%, 2.4%, and 2.1% gains, respectively, as of early this afternoon. One factor that’s worried US chip makers lately is the ban on US companies’ transactions with Chinese tech giant Huawei. Signs of easing US-China trade tensions could be driving the shares of US chip makers up today.