The broader markets saw a positive momentum on Monday with tech stock leading the show. Apple investors cheered as everyone is eagerly waiting for the launch of the next flagship iPhone 12 5G.
On Monday, October 12, the tech giants continued stampede on Wall Street with Apple Inc (NASDAQ: AAPL) taking the lead. AAPL stock jumped 6.35% closing at $124.40 and a market cap of $2.16 trillion. Later today, October 13, Apple has scheduled its special event and most likely it will be an exclusive event for the launch of its upcoming flagship iPhone 12 5G.
Analyst at Morgan Stanley said that this will be Apple’s most significant event in years. This is because Apple plans to introduce a major technology upgrade, 5G compatible handsets. Besides, industry reports suggest that iPhone 12 will bring a major design change, the first after 2014’s iPhone 6. In a note to investors, Wedbush wrote:
“We expect four models of iPhone 12 to be unveiled on Tuesday … We are seeing Apple and its Asian suppliers anticipate stepped-up demand for the larger 6.7-inch model which is raising the overall iPhone 12 expectations heading into this ‘once in a decade’ potential launch.”
It further added:
“With our estimation that 350 million of 950 million iPhones worldwide are currently in the window of an upgrade opportunity, we believe this will translate into an unprecedented upgrade cycle for Cook & Co.”
It looks like Apple investors and the iPhone fans are eagerly waiting for Tuesday’s event. AAPL stock has a history of outperforming in the months just after the release of new iPhones. It is very much likely that the same will repeat this time as well.
Dow Jones Jump 250 Points, Tech Stock Rally
On Monday, the Dow Jones Industrial Average (INDEXDJX: .DJI) surged 250 points or 0.9%. The tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) also jumped nearly 300 points above 2.5%. Apart from Apple, other stocks also deliver a strong performance.
Amazon.com Inc (NASDAQ: AMZN) stock jumped 5% and Microsoft Corporation (NASDAQ: MSFT) jumped 3%. Amazon is all prepping up for its Prime Day event starting October 13. Although President Donald Trump has halted the stimulus talks until elections, Wall Street is all set for the financial earnings.
Over the next two days, some of the major banks will be reporting their last quarter earnings. Besides, there are still hopes that the U.S. lawmakers will come with another stimulus package to support small businesses, Americans, and the country’s ailing aviation sector. In a note to clients on Monday, Morgan Stanley analysts said that they don’t expect another coronavirus relief until next year. But they added:
“Our economists believe there is enough momentum in the recovery to keep the U.S. economy on pace to return to pre-Covid levels of real GDP by the middle of next year.”
Other news from stock markets can be found here.
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