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Apple Stock Resumes Its Slide After Posting Best Day Since 1998
Apple ( AAPL ) shares tumbled Thursday, giving back some of their gains from a historic rally yesterday when President Trump paused most of the tariffs that took effect overnight.
Apple stock was down 6% in recent trading. Shares skyrocketed 15.3% yesterday, their biggest one-day gain since 1998, after President Trump announced a 90-day pause on nearly all of the “reciprocal tariffs” he unveiled last week. The pause sent the major indexes soaring, with the S&P 500 notching its best day since 2008 and the Nasdaq Composite posting its biggest gain since 2001.
Apple has been hit particularly hard by President Trump’s tariffs, especially those on China, where the company manufactures an estimated 90% of its products. Shares slumped nearly 25% between Trump’s tariff announcement last week and yesterday’s pause.
Bank of America analysts on Monday maintained a “buy” rating on Apple stock, citing its stable cash flows, resilient earnings, and potential benefits from AI. And in a note on Tuesday, BofA called the pullback “a particularly enhanced buying opportunity for investors to own a high-quality name.”
Despite Wednesday’s tariff pause, Apple still finds itself in the middle of escalating U.S.-China tensions. China matched Trump’s 34% tariff rate last week, a move that prompted Trump to further increase tariffs on Chinese imports. Another round of retaliation from China led Trump on Wednesday to raise the rate on Chinese goods to 125% from 104% .
Apple is reportedly planning to ship more U.S.-bound iPhones from India to mitigate the tariff impact. Morgan Stanley analysts in a note on Wednesday said Apple would need to double iPhone production in India to completely decouple U.S. consumers from Chinese manufacturing. “To us, this is fathomable, but might take longer than 6-12 months,” the analysts wrote.
In the near term, Apple could pull its lower-margin, low-storage iPhone models and lean into financing plans to offset the headwind of higher prices, according to analysts.
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