U.S. stocks edged higher on Monday as the market cheered Apple shares’ surge to a new all-time high, with Dow Jones Industrial Average rising by over 500 points.
Summary
- Dow Jones jumped over 500 points as S&P 500 and Nasdaq Composite also moved higher.
- Apple stock rose to a new high amid analyst upgrade and bullish iPhone 17 sales report.
- Investor reaction to latest outlook on U.S.-China trade tensions and earnings boosted stocks.
The Dow Jones Industrial Average hovered 532 points up, or 1.15% higher, while the S&P 500 added 1.2% and the Nasdaq Composite gained 1.5%. Gains for the major U.S. gauges came from a notable spike in the shares of Apple.
Outlook contrasts with market’s end to last week’s session. Bitcoin (BTC) remained constrained near $110,000.
Dow pops as Apple buoys stocks
In trading that had all the U.S. indexes up, the standout stock performer was Apple.
The iPhone maker’s stock jumped by more than 4.3% to a new all-time high above $263 to catalyze gains for the broader stock market.
AAPL rose after analysts at Loop Capital upgraded the stock to buy from hold, with the company putting the upgrade down to iPhone’s fresh demand trends. The Apple stock price hit the fresh peak as a report by Counterpoint Research indicated Apple had recorded an initial surge in iPhone 17 sales.
Per the metric, iPhone 17 has outpaced iPhone 16 sales in both the U.S. and China.
Trade war and shutdown fears
While investor jitters around the stretched government shutdown remain, the downbeat mood faded a little amid comments by an official in President Donald Trump’s administration.
According to Kevin Hassett, National Economic Council director, the ongoing U.S. government shutdown could end this week.
Hassett told CNBC in an interview that “moderate” Democrats could help end the shutdown impasse. The comments, as well as anticipation around a thawing in the U.S.-China trade tensions helped stocks. Presidents Trump and Xi Jinping are expected to meet later this month.
Trump said on Monday that he expects the U.S. to reach a “fair” trade deal with China when he meets Jinping.
“We’re going to have a fair deal,” Trump noted. “I want to be good to China. I love my relationship with President Xi. We have a great relationship.”
Elsewhere, the third-quarter earnings season getting underway on a strong footing also helped equities. Eyes will be on industry heavyweights like Tesla, Intel, Netflix, and Coca-Cola in coming days.
