Apple shares rose 4% on Thursday as reports of a potential large-scale foldable iPhone rollout offset broader market weakness, according to The Motley Fool. While the S&P 500 faced pressure from declines in major tech stocks like Tesla and Micron Technology, Apple’s market capitalization increased by $182 billion, preventing a deeper index-wide retreat.
Why is Apple diverging from the tech sector?
Investors are reacting to reports that Apple has instructed parts suppliers to prepare for a significant launch of foldable devices. According to industry data cited by The Motley Fool, the projected volume for these units in 2026 has been revised upward to 10 million, compared to previous estimates of 7 to 8 million. This expansion, combined with plans for approximately 70 million iPhone 18 Pro and Pro Max handsets, suggests a major sales push that is currently shielding Apple from the volatility affecting its peers.
Apple’s market movement provided a critical buffer for the S&P 500. Without the gains from the iPhone maker, the index would have seen a significantly sharper decline, as eight of the 10 largest market-cap components experienced price drops.
How are Tesla and Micron impacting the Nasdaq?
The Nasdaq Composite fell 0.8% on Thursday, largely pressured by losses in Tesla and Micron Technology. Tesla shares dropped 7.4% despite June vehicle deliveries beating analyst estimates by 18%, as investors moved to lock in profits following a 13% rally over the previous four trading sessions. Meanwhile, Micron Technology saw a 5.8% decline. The chipmaker is currently navigating a price-fixing lawsuit concerning older memory technologies, adding to the downward pressure on the broader semiconductor sector.
What do the latest jobs and economic data signal?
The U.S. labor market showed signs of cooling as the June jobs report recorded 57,000 new positions, falling short of the 110,000 anticipated by economists, according to The Motley Fool. While the unemployment rate ticked down to 4.2% from 4.3%, this change was attributed to a decrease in the number of individuals actively seeking work. Following the report, Treasury yields declined, reflecting investor expectations that softer economic data may reduce the Federal Reserve’s pressure to maintain or increase interest rates.
Market Uncertainty and Safe-Haven Assets
Investors are currently moving capital into both gold and Bitcoin, a trend often associated with broad market uncertainty. The SPDR Gold Shares (GLD) rose 2.1%, while the iShares Bitcoin Trust (IBIT) gained 2.6%. This simultaneous rally in both traditional and digital assets suggests a defensive posture among market participants as they weigh diplomatic developments in the Strait of Hormuz against domestic economic indicators.
Frequently Asked Questions
- Why are markets closed on Friday? Markets are closed on July 4 in observance of Independence Day.
- Why is the Dow performing differently than the Nasdaq? The Dow Jones Industrial Average, which rose 0.7%, does not include Tesla or Micron, allowing it to avoid the specific volatility affecting the tech-heavy Nasdaq.
- What is the status of the Strait of Hormuz shipping backlog? The backlog decreased to 380 ships from 485 earlier in the week, though only five ships completed the passage in the last 24 hours, according to reported data.
Are you adjusting your portfolio for the second half of the year? Share your thoughts on the current rotation from growth stocks to industrials in the comments below.
