Attendees inspect the new iPhone 16 Pro and 16 Pro Max during an Apple special event at Apple headquarters on September 09, 2024 in Cupertino, California.
Justin Sullivan | Getty Images News | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
The bottom line
Maybe all it takes are shiny new things to lift our mood and take our minds off recession fears.
I’m jesting — but just partially.
Apple on Monday launched sleek new iPhones, watches and earphones. The excitement of the event and the prospect of having something look forward to may have lifted market sentiment.
Detractors who think that’s a far-fetched assertion should remember Apple dominates more than half of smartphone shipments in the U.S., according to Counterpoint Research. Further, a 2023 Bloomberg survey found 79% of Gen Zers prefer iPhones over other smartphones, implying that Apple’s market share could grow more as that demographic gains earning power.
True, post-event, Apple shares just crawled up 0.04%. But, as CNBC’s Kelly Evans points out, the Cupertino-headquartered company’s stock tends to fall after product announcements.
This reversal of the trend offers a glimmer of hope that Apple’s plans to integrate AI into its phones will rejuvenate iPhone sales, which have been slumping amid increased competition from Chinese brands.
And when the S&P 500’s biggest constituent is experiencing favorable winds, other stocks will also benefit from its slipstream.
Nvidia jumped 3.5% after falling 14% last week. Broader markets rose as well. Both the S&P and the Nasdaq Composite climbed 1.16%, while the Dow Jones Industrial Average gained 1.2%.
Apart from Apple’s announcement, there wasn’t any other material news that would have impacted markets.
Of course, Apple’s event is not the sole reason markets rose yesterday. Last week’s broad sell-off presents investors with opportunities to pick up stocks at a relatively cheaper price, which would induce a rebound rally.
Markets are still largely driven by sentiment, as mentioned yesterday.
That said, the consumer and producer price index reports coming out Wednesday and Thursday, respectively, are concrete pieces of data that have the potential to affect markets dramatically.
They’ll also let us know if we can afford those shiny new things that Apple’s dangling in front of us.
– CNBC’s Pia Singh and Lisa Kailai Han contributed to this story.