After the iPhone maker’s quarterly earnings comforted investors worried about a recession, Apple’s (AAPL.O) shares rose about 5% on Friday, hitting a nine-month high for its greatest one-day gain since November.
Apple’s rise lifted the S&P 500 (.SPX) and Nasdaq (.IXIC) over 1.5% after CEO Tim Cook’s findings late on Thursday showed corporate profits’ resiliency in a quarterly reporting season that has been better than predicted.
Apple’s reliability calmed the market. “Tim Cook has a steady hand on the helm,” said Jake Dollarhide, CEO of Tulsa-based Longbow Asset Management.
“Investors in uncertain times want certainty, and Apple, as well as Microsoft (MSFT.O), are as close as you can get to certainty,” Dollarhide said.
The world’s most valuable corporation outperformed analysts’ projections despite decreased revenue and earnings for the quarter ending April 1. In addition, due to developing regions like India, Apple executives predicted higher gross profit margins for the upcoming quarter.
Apple’s stock market worth rose $100 billion to $2.7 trillion, surpassing Microsoft’s $2.3 trillion.
The Cupertino, California company’s shares were headed for their highest one-day rise since November 30 at $173.48. They came close to $176 last August.
Apple’s stock has recovered approximately 40% from its January low and is only 4.7% off its January 2022 record high close. The S&P 500 is 15% below its January 2022 record-high closing. According to Refinitiv data, 13 analysts boosted their price predictions for Apple’s shares after its report, raising the median goal to $180 from $170.