Had Apple Inc. not fallen so deeply from its own all-time high, the S&P 500’s multiple record highs on Wall Street would not have taken so long. After more than a year-long wait, the S&P 500’s multiple set record highs this week, notes Reuters.
Apple slowed S&P 500 index pace
On May 21, 2015, the S&P 500 hit its prior record high, and since then, the benchmark has risen 1.55%. According to S&P Sow Jones Indices, the S&P 500 would have gained 2.63% during that time if we exclude Apple, its largest constituent. The Cupertino-based giant is still down 26% from its own record high close of $133 set on Feb. 23 2015, despite it gaining 1.98% on Thursday. It was Apple’s biggest one-day rise since May.
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Apple became a must-own stock for growth investors after the launch of the iPhone in 2007. In addition, its stellar rise fueled gains in the S&P 500. However, that trend has reversed as now investors are concerned about failing sales of the iPhone. Apple has been struggling with slow sales in China, the second largest market for smartphones.
According to S&P Dow Jones Indices, Apple’s weight within the S&P 500 dropped from 4.03% (when its stock was at its all-time high) of the index to 2.9%. Meanwhile, the S&P 500 Information Technology Index would be up 4.74% in 2016 rather than its actual 3.01%, excluding Apple, which is also the world’s largest publicly traded company by market capitalization.
A good day for stocks and markets
On Thursday, Apple and Goldman Sachs boosted the Dow Industrials to a new high. Japan’s Line scored the biggest technology IPO this year so far. The instant messaging app surged 27% in its NYSE debut.
The S&P 500 and Nasdaq rose 0.5% and 0.6% respectively, while the Dow Jones Industrial Average jumped 0.7%. The S&P 500 hit a new high, while Nasdaq added to its small year-to-date gain. On Thursday, the top gainers included airlines, solar stocks and banks. Despite a 2% pickup in West Texas Intermediate crude prices to $45.53 a barrel, oil stocks lagged on Thursday.
Apple stock jumped 2% in normal trade. In six of the past seven sessions, the iPhone maker’s shares have risen. The stock has rebounded 11% from its May 12 low but is still down 25% from its 52-week high. Meanwhile, Goldman Sachs gapped up and gained 3% in above-average volume.
On Thursday, Apple shares closed down 1.98% at $98.79. Year to date, the stock is down almost 8%, while in the last year, it is down almost 20%.