Kriti Gupta – Bloomberg/Newsroom
Happy Monday!
A reader reminded me that a Chart of the Day from a few weeks ago illustrated Apple hitting $3 trillion in market cap could trigger a broader S&P 500 correction. Lo and behold, that’s exactly how this correction played out. The tech giant hit $3 trillion on January 3rd. Since then, the stock lost 13%, while the S&P 500 lost 11%. The correlation isn’t new. Each time Apple’s market value hit a trillion-dollar milestone, the S&P 500 has entered a technical correction. And each time, a dollar slump has been the key to turning it around.
After every correction, the S&P 500 pared the losses when the dollar started to weaken with big tech leading the way higher. Today’s Chart of the Day illustrates that pattern. It happened at the end of 2018, setting up a rally for the start of 2019. It was there again in 2020, when the dollar’s peak that March coincided with the equities bear-market bottom. Read more on the web here.
Feedback always welcome!
