Apple stock reaches new highs amid broader market selloff
Apple (AAPL) shares closed at all-time highs on Tuesday, at $165.30. The stock was up more than 3%, as investors flocked to the iPhone maker amid a broader market selloff.
"It seems to be like a flight to safety trade," Matt Maley managing director equity strategist Miller Tabak told Yahoo Finance on Tuesday.
Some analysts have also noted the company's impressive cash flows would help it weather any future downturn.
The stock's upward movement came on the same day Fed Chair Jerome Powell indicated the Federal Reserve would talk about the possibility of accelerating its tapering program at its next FOMC meeting in a move to combat inflation. Powell also indicated that it's time to "retire" the word 'transitory' when talking about inflation.
Investors bought up Treasuries, sending the 10-year Treasury yield (^TNX) down to 1.44% by mid-afternoon.
"I just wonder if people are saying, if the Fed is going to tighten faster than they're saying, 'should I be looking at something else,'" said Maley. " 'I need something else besides Treasuries and what better than Apple computer?' "
Heading into the end-of-the-year holiday, Maley believes Apple could benefit from consumers looking to buy products in case they go up in price next year.
"If you want a flight to safety which also gives you a little exposure to strong consumer spending into the holiday, Apple computer is a good play," he added.
All 11 sectors of the S&P 500 were in the red today amid the broader sell-off, with Information Technology stocks, helped by Apple's performance, losing the least.
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