Apple is Nosediving, and if the dollar is weak, it may be its savior

    According to Bloomberg News, Apple Inc has suffered the worst week since a year ago in February, and on Monday, it was down again. But what can cause this trend to get reversed? If trends from the past are believed,d a weal dollar could do the trick. 

    On January 3rd, 2022, this tech giant has hit a $3 trillion market capitalization. Ever since, there has been an l3% stock loss, while the S&P 500 was seen to have lost 11%. This co-relation is not new and not happening for the first time. It has been observed in the past that every time the market value of Apple has hit a trillion-dollar milestone, a technical correction by the broad gauge market has been entered into. Every such instance has been reversed by a slump in the dollar, which proved to be a turning point. 

    In August 2018, when Apple reached a market cap of 1 trillion dollars, it gave rise to a 20% technical correction in S&P 500. The same thing happened two years later while breaching the $2 trillion milestones, which helped trigger the tech wreck in 2020. Other factors have been playing an instrumental role as well, including decisions of the Federal Reserve and macroeconomic developments. 

    Bloomberg News reports that an exciting aspect worth noticing is that the S&P 500 recovered with the dollar’s weakening every time such instances occurred. Consequently, Apple led the way again higher up. 

    It can be explained that whenever there has been a crisis across the globe and uncertainty has reined. There is a tendency to consider the significant US assets as safe places for international investors. And for the stock market investors, it is always big tech. However, as the demand for a haven escalates, the assets tend to get overvalued, which explains why dollar weakness has served as a key gauge for overseas investors. Also, tech has been a driving force in most of the pandemics, and in turn, has ended up creating an inverse correlation between US equities and the dollar.

    The correlation between shares of Apple and the Bloomberg Dollar Index, a proxy for shares of the big tech companies, is a meager 0.2. The point is that it is best to keep a tab on the dollar, and the moment it becomes weak and allows more incentives to overseas investors, the S&P 500 index will reverse as it has done in 2022 until now. And as per history, Apple has been playing a significant role in the same.


    RELATED ARTICLES

    OTT platforms

    OTT Platforms: Reviving Local Languages, Culture, and Heritage in India

    OTT systems have revolutionized content material intake in India, presenting audiences with admission to numerous...
    mental health

    Mental Health Awareness In India: Breaking The Stigma In 2025

    One of the aspects of our overall well-being is mental health, and it should not...
    women safety in India

    Women Safety in India: Key policy changes and ongoing challenges

    For an extended period, Indian society has maintained women's safety as both domestic and international...
    New Education Policy 2024

    New Education Policy 2024: Learning is Being Transformed

    Education in India has long been dependent on traditional methodologies that emphasize rote learning and...
    what is one way that technology can improve the distribution of goods?

    What is one way that technology can improve the distribution of goods?

    Technology has transformed almost all sectors, and logistics is no exception. To answer the question,...
    Pennsylvania Tornado

    Tornado Watch Issued for Several Counties in South-central PA

    Even though Pennsylvania is celebrated for its picturesque hills, forested landscapes, and historic background, it...
    movies

    Bollywood 2025: Upcoming Movies and Trends to Follow

    Bollywood has not resorted to re-releasing those golden films alone; rather, it is preparing to...
    Unsent Message Project

    Unsent Message Project: Heartfelt Messages Untold

    In a generation in which virtual verbal exchange is rapid and convenient, a few messages...
    Vietnam

    Top 10 Must-Visit Destinations in Vietnam for Every Traveller

    Vietnam offers a range of experiences, from busy urban centres in the south to calm...
    Portable Power Station

    Guide to Use and Charge a Portable Power Station in Winter

    “Following Ireland's request for assistance relating to power outages caused by the record-breaking storm Éowyn,...
    Communication Skills

    Navigating the Seas of Shipping: Essential Communication Skills

    The shipping industry is the backbone of global trade, responsible for transporting goods across vast...