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Apple market value tops US$2 trillion for the first time

APPLE has seen its market value hit $2trn for the first time as shares in US tech companies enjoy a surge in popularity during the coronavirus pandemic.

Apple is the first US company to have a market capitalisation above $2trn

The iPhone-maker’s stock reached the milestone during early trading on Wall Street following a leap of almost 60% in the value of its shares during the year to date.

It was almost exactly two years ago that the company’s so-called market capitalisation hit $1trn.

Market experts have credited resilience from coronavirus chaos and a flood of cheap money from US central bank support for the economy for a surge in tech firm shares this year.

The sector helped drive the tech-focused Nasdaq to record highs in June while the broad-based S&P 500, America’s main stock market, struck new highs on Tuesday.

The market moves are astonishing given the country is in the grips of a recession and far from business as usual amid continuing pandemic restrictions across many US states.

In the case of Apple, the disruption it has experienced began early in the year as factories in China, where its core products are made, entered lockdown.

The company also shuttered Apple stores globally.

However, the manufacturing disruption proved short-lived and its stock rallied hard after it reported 11% growth in revenue during the April-June quarter and rising profits.

The performance eased concerns investors may have had that demand for top of the range iPhones and iPads would be knocked as millions of customers pondered whether they were at risk of losing their jobs.

The bet now is that Apple will prosper more in the post-coronavirus world where more people are likely to be working from home. –