Apple surges 3.25% to $303.9, market cap hits $4.46 trillion

Apple shares climbed to a record valuation, adding more than $140 billion in market value in a single session.

Apple Inc. shares surged 3.25% to $303.9 on Thursday, pushing its market capitalization to $4.46 trillion and extending a rebound from a six-session losing streak.

"The magnitude of this move reflects investors reassessing Apple's pricing power after the initial shock of its product price increases wore off," said Sarah Lin, equity strategist at Edgen. "The market is now focusing on the services revenue stream, which carries higher margins."

The rally erased part of a 6% decline on June 26, when Apple fell after raising prices on Macs, iPads, home devices and the Vision Pro to offset cost increases from a shortage of memory chips and storage. The stock had fallen for six consecutive sessions through Wednesday, shedding roughly $280 billion in market value. Thursday's advance added about $140 billion in market capitalization, bringing Apple's valuation back above the $4.4 trillion mark.

Apple's recovery comes as the broader technology sector gains momentum ahead of the Q2 earnings season, with analysts projecting S&P 500 earnings growth of 23% driven largely by AI-related spending. The Nasdaq 100 rose 1.68% on Tuesday, the last trading day of the second quarter, while the S&P 500 added 0.79% and the Dow Jones Industrial Average gained 0.26%. Chipmakers including Micron Technology and Qualcomm have issued bullish forecasts that lifted sentiment across the tech sector.

The 10-year Treasury yield stood at 4.42% after the May JOLTS job openings report showed an unexpected increase to 7.594 million, signaling a stronger labor market than economists had anticipated. Swap markets are pricing a 32% probability of a quarter-point rate hike at the Federal Reserve's next policy meeting on July 28-29.

Apple's services business, which includes the App Store, Apple Music, iCloud and Apple Pay, has become an increasingly important driver of revenue and profit. The segment generated more than $25 billion in revenue in the most recent quarter, with gross margins exceeding 70%, compared with roughly 36% for hardware products. Analysts expect services revenue to grow as the company expands its advertising business and subscription offerings.

The stock's rebound also reflects broader market dynamics. Higher rates typically pressure growth stocks by discounting future cash flows, but Apple's strong balance sheet and share buyback program — the company returned more than $25 billion to shareholders in the most recent quarter — provide a buffer against rate sensitivity. Apple reports fiscal third-quarter results in late July.

This article is for informational purposes only and does not constitute investment advice.