Home » Apple stock ‘could be the canary in the coal mine’ for China reopening: Strategist

Apple stock ‘could be the canary in the coal mine’ for China reopening: Strategist

by WorldFinance
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Investors curious about the next move in the broader market would be wise to pay extra attention to shares of multinational tech giant Apple (AAPL).

“One of the reasons that has been helping sentiment, particularly in industrial stocks and things like that, is the idea that China is going to be reopening,” Interactive Brokers chief strategist Steve Sosnick said on Yahoo Finance Live (video above). “If there is another wave of lockdowns in China, that really upends that story. It upends global growth potential. And so, yes, Apple could be the canary in the coal mine.”

Apple stock has gained about 2% in the past month, underperforming the S&P’s nearly 7% gain.

The COVID-19 situation in China, a key manufacturing hub for Apple, has taken a turn for the worse in recent weeks — impacting the operations of Apple, Tesla, and other U.S.-based companies.

China’s COVID-19 cases are surging toward record highs just as the country was moving away from its zero-COVID policy, which had spurred optimism in global asset markets.

On Wednesday, China’s National Health Commission (NHC) reported over 28,000 infections nationwide in the country for the prior day. That’s roughly equivalent to the 2022 peak in April, according to the NHC.

Apple’s business has been thrust into the limelight amid the COVID-19 resurgence in China.

“Apple is too big to ignore,” Sosnick stressed.

The COVID-19 situation in China, a key manufacturing hub for Apple, has taken a turn for the worse in recent weeks — impacting the operations of Apple, Tesla, and other U.S.-based companies.

China’s COVID-19 cases are surging toward record highs just as the country was moving away from its zero-COVID policy, which had spurred optimism in global asset markets.

On Wednesday, China’s National Health Commission (NHC) reported over 28,000 infections nationwide in the country for the prior day. That’s roughly equivalent to the 2022 peak in April, according to the NHC.

Apple’s business has been thrust into the limelight amid the COVID-19 resurgence in China.

“Apple is too big to ignore,” Sosnick stressed.

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