by Coinstrooper Crypto Articles
Quick Take
  • Apple (AAPL) stock hit a record $354.50 on November 4, then slipped about 1.5% Thursday while the Nasdaq fell 5.52%.
  • Shares closed at $349.51 Wednesday, up 5.31%, as investors rotated from AI hardware into Apple’s lighter AI spending.
  • The move came after Democrats won control of both chambers of Congress in the midterm elections.
  • Investors read the result as gridlock, sending the Dow up more than 3%.

What Happened

Shares closed at $349.51 Wednesday, up 5.31%, as investors rotated from AI hardware into Apple’s lighter AI spending. Thursday tested that safe-haven trade.

The move came after Democrats won control of both chambers of Congress in the midterm elections. Investors read the result as gridlock, sending the Dow up more than 3%.

Stocks plummeted Thursday as investors accelerated their exit from tech on fears of a slower data center buildout, CNBC reported. The Nasdaq Composite fell 5.52%, the S&P 500 lost 4.36%, and the Dow dropped 3.44%.

Market Context

Meanwhile, capital rotated out of AI hardware names on fears of new data center limits. Nvidia fell about 3% that day, while Apple’s lighter AI spending made it a tech safe haven.

That shift could also ease pressure on memory chip prices, Apple’s main cost headwind this year. Falling oil prices and Treasury yields added further support.

As a result, Apple’s market value climbed to $5.08 trillion. That made it the world’s most valuable company again, overtaking Nvidia at $4.83 trillion.

Apple fell about 1.5% to around $344, according to TradingView. Nvidia fell 9% and Broadcom 10%.

Volume reached 89.6 million shares, the highest since late June, suggesting strong buyer participation. Meanwhile, the Relative Strength Index (RSI) climbed to 58, returning to bullish territory.

A daily close above $354.50 would put Apple in price discovery, with no historical resistance overhead. However, the upper wick on Wednesday’s candle hinted at profit-taking near the record, and shares slipped on Thursday.

Valuation remains a risk, with Apple trading near 36 times forward earnings. Further tech selling is the larger threat to the setup.

Why It Matters

On the downside, $340 is first support, and Thursday’s decline held above it. The 50-day MA at $335 comes next, and a break below $325 could expose the 0.618 Fibonacci level at $305.

Details

Apple (AAPL) stock hit a record $354.50 on November 4, then slipped about 1.5% Thursday while the Nasdaq fell 5.52%.

Why Did Apple Stock Rally Before the Crash?

How Did Apple Stock Hold Up in the Crash?

The Magnificent Seven tech stocks lost close to $900 billion in value heading into the final hour. Nvidia alone shed about $374 billion, while Apple shed nearly $59 billion.

Apple still fell, so its safe haven status holds only in relative terms. The stock remains up about 26% year to date.

Post-Earnings Dip Came First

The rally erased losses that followed Apple’s fiscal fourth-quarter report on November 2. Revenue rose 12% year-over-year to $114.5 billion, according to the company’s release. Earnings per share of $2.10 beat the $1.99 consensus.

However, Apple guided December-quarter gross margin to 45% to 46%, down from 47.9%. Executives flagged rising memory costs, and shares fell for two straight sessions.

Apple Stock Technical Analysis

On the daily chart, shares pulled back 7.5% from the October 23 high of $351.73 to $325.33 on November 3.

That decline reached the 0.382 Fibonacci retracement level near $325. The zone held as support for the second time, after a similar test in early October.

Shares briefly lost the 50-day moving average (MA) at $335 during the dip. However, the next session reclaimed it with a strong bullish candle.

What’s Next for Apple Stock?