Apple’s market value breaches $3 trillion mark for second time

Gains in Apple shares come as technology stocks rebound on bets that the US Federal Reserve may slow its rate hikes.

Apple Inc’s market capitalization has breached the $3 trillion mark for the first time since January last year as investors bet on the iPhone maker’s ability to increase its revenue even as it explores new markets, such as virtual reality.

Shares of Apple, which is the world’s most valuable listed company, were up 1.3 percent at $191.99 in Friday morning trading. They have jumped nearly 46 percent this year and, at the current price, the company’s market value stands at $3.02 trillion.

Apple’s market value briefly peaked above $3 trillion for the first time on January 3, 2022, in intraday trading before closing the session just below that mark.

The latest gains in Apple shares come as technology stocks rebound on bets that the United States Federal Reserve may be slowing its pace of interest rate hikes as well as on the buzz around artificial intelligence.

The expectations around interest rates were based on a report on Friday that showed an inflation index that the central bank closely monitors tumbled last month to its lowest level since April 2021, pulled down by lower petrol prices and slower-rising food costs.

The inflation index showed that prices rose 3.8 percent in May from 12 months earlier, down sharply from a 4.4 percent year-over-year surge in April.

At the same time, consumers barely increased their spending last month, leading to predictions of a slowing economy and a slowdown in rate increases by the Fed.

Apple’s less-than-expected fall in sales in its most recent quarterly report has highlighted the tech giant’s resiliency in an uncertain economy and reinforced its reputation among investors.

Currently, four other US companies have a valuation of more than $1 trillion: Alphabet Inc, Microsoft, Amazon.com Inc and Nvidia Corp.