Apple’s stock rose almost two and a half percent a day after the tech juggernaut announced it’s latest iterations of the iPhone. According to Reuters, Apple’s climb pushed the rest of the tech sector up, with technology firms seeing a rise in shares across “all three major U.S. stock indexes on Thursday.”
Apple’s competitors Alphabet and Microsoft saw significant gains as well according to Market Watch. The markets responded to tech’s surge, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq all rising throughout the day, according to CNBC.
“There are a lot of things that can drive a stock higher, but if you want to know what produces massive multi-year gains, it’s sustained, revolutionary innovation like what Apple just gave you,” said Mad Money host Jim Cramer according to CNBC.
According to The Street, the announcement of Apple’s three newest iPhones — the iPhone Xr, Xs, and Xs Max — was preceded by the unveiling of the company’s new Apple Watch, which appears to be designed for “an aging, health-conscious consumer.” Analysts say this move will attract new customers who had not considered purchasing Apple products in the past.
“Look at how much this category has grown in such a short period of time,” said Apple CEO Tim Cook as he introduced the latest Apple Watch, according to The Street. “To think this category didn’t even exist a short time ago and is now being embraced by so many people around the world. Apple Watch is not only the number 1 smartwatch in the world, it’s the number one watch, period.”
Although Apple’s announcement on Wednesday was a significant driver of the markets’ performance on Thursday, news that Washington was inviting economic delegates from Beijing for more trade talks also relaxed worried investors, according to Reuters. Additionally, the U.S. Department of Labor announced Thursday that during August, “U.S. inflation slowed more than expected,” according to The Street.
“The inflation numbers came out lower than people had expected. That’s a positive because it gives the (Federal Reserve) cover to maybe move slower in raising interest rates, which is good for equities,” said Burns McKinney, portfolio manager at Allianz Global Investors in Dallas during an interview with Reuters.
Despite the good news on inflation, not all experts are convinced it will stop the Fed from increasing rates in the near future, according to Charlie Ripley, the senior strategist at Allianz Investment Management while speaking to The Street.
Consumers who are eager to get their hands on either the iPhone Xs or Xs Max can do so by pre-ordering the devices on Friday, September 14, according to a report from The Verge. The Xs Max, which offers the largest screen, will run between $1,099 and $1,449, depending on the amount of memory. The iPhone Xs starts at $999.
The iPhone Xr, which is priced at only $749, will be available for pre-order in October. According to CNBC’s Technology Product Editor Todd Haselton, the Xr is going to be “the iPhone for most people” and will offer consumers ” the best bang for your buck.”