Apple (AAPL:NASDAQ) shares rose for the 11th straight day on Tuesday, marking the longest winning streak since 2003. The company’s stock closed up 1.9%, wiping out its losses for the year, and is on pace to hitting a $3trn market cap. Tuesday’s rally brought Apple’s market cap to around $2.9trn
Shares of the tech behemoth is still about 1.7% (or roughly $3) shy of its record close on Jan. 3, when Apple’s market cap hit $3 trillion during the day. As of Tuesday, Apple was worth around $2.9 trillion.
Apple’s rally comes alongside a broader market gain, with investors turning more optimistic about ceasefire negotiations between Russia and Ukraine. Apple’s Big Tech peers also gained on Tuesday, as Meta (FB:NASDAQ), Amazon (AMZN:NASDAQ), Netflix (NFLX:NASDAQ), and Alphabet all advanced.
While much of high-growth tech has gotten hammered this year, the big established names have generally held up better than emerging, money-losing companies. With inflation rising at the fastest pace in 40 years and the Federal Reserve hiking interest rates, investors are putting their money in less-risky assets.
However, the uncharacteristic rally in tech stocks despite rising yield has caught most investors off guard by this rally, resulting in many playing catch up. Usually, when the Fed begins to tighten monetary policy and increase interest rates, investors take this as a cue to divest from high growth multiple stocks. This results in a sell-off in tech stocks.
Albeit, the move in the tech sector despite the Federal Reserve raising interest rate by 25 basis points, and hinting at a more aggressive move in subsequent months has not prevented tech stocks from rallying. The move on Apple stock and the broader tech sector is also indicative that investors have found risk appetite, even against the rise in bond yields.
Apple has even faced some challenging news this week, as Nikkei Asia reported the company was scaling back production of its new budget iPhone SE due to weaker-than-expected demand. Apple’s leadership has proven its ability to navigate choppy waters.
Apple shares finished 1.91% higher at the end of Tuesday’s trading session. The stock is two positive sessions away from breaking its record for the longest winning streak
On the other hand, Tesla (TSLA:NASDAQ) had a flat performance on Tuesday’s trading session after a momentous rally the previous day. Shares of the electric vehicle maker closed 8% higher on Monday after Tesla Inc. said it would request shareholder approval at its annual meeting for an increase in the number of shares of the electric-car maker to enable a stock split, though the company didn’t specify when such a split would take place or what the ratio of shares would be.
The proposal comes almost two years after Tesla enacted a 5-for-1 stock split as shares of the company run by Elon Musk rode to new heights. Tesla, at the time, said it was making the move “to make stock ownership more accessible to employees and investors.
It may also be indicative of the fact that stock splits may be coming back as tech companies are looking to galvanize the interest of retail investors after what has been a lackluster year so far.
Earlier this month, Amazon said it would split its stock 20-for-1. Google (GOOG:NASDAQ) parent, Alphabet Inc., said on Feb. 1 that it would enact a 20-for-1 stock split, giving shareholders 19 more shares for every one they own. Tesla is currently authorized to issue 2 billion shares. As of Jan. 31, the company had 1.03 billion shares outstanding.
The stock is down around 2% this year amid wider market turmoil following Russia’s attack on Ukraine that began last month. Tesla shares are still up more than 60% over the past year, though.