Apple ( AAPL ) stock rebounded from its worst 4-day stretch since 2000 on Wednesday as investors cheered President Trump's announcement of a temporary reprieve from most of the sweeping tariffs imposed overnight.
Apple shares were up more than 12% in recent trading, one of the biggest gains among the Magnificent Seven after days of being hammered by President Trump’s sweeping tariffs . Trump on Wednesday announced he was pausing for 90 days most of the tariffs announced last week, except for those on China, which he instead lifted from 104% to 125%.
Apple lost its title of the world’s most valuable company to Microsoft ( MSFT ) when shares fell 5% yesterday, putting the stock down nearly 25% since Trump’s “Liberation Day” tariff announcement last Wednesday. Wednesday's rebound put the two companies neck-and-neck in terms of market value, with each hovering around $2.68 trillion. Read Investopedia's live coverage of today's trading here .
Apple’s reliance on China, where it assembles an estimated 90% of its products, is expected to be a headwind for the iPhone maker. The Trump administration has hit Chinese goods with tariffs totaling 125% this year, threatening to significantly increase Apple’s costs and potentially weigh on consumer demand. Apple won an exemption from the first Trump administration during its 2018 trade war with China, but no such reprieve has materialized this time around.
The company is reportedly planning to send more iPhones to the U.S. via India, which as of Wednesday is subject to a 26% tariff rate . Apple, in an effort to diversify its supply chain, has been ramping up its manufacturing and assembly operations in India for years.
Bank of America on Monday maintained its “buy” rating on Apple stock, citing its stable cash flows, "earnings resiliency," and potential to benefit from AI. The firm’s $250 price target represents 45% upside from Tuesday’s close.
In a separate note on Tuesday, BofA analysts called Apple stock’s pullback “a particularly enhanced buying opportunity for investors to own a high-quality name.”
Update—April 9, 2025: This story has been updated to reflect the 90-day pause of most tariffs and the increased rate on Chinese imports.
Read the original article on Investopedia