Apple shares rose 2.6% on Tuesday, continuing to outperform the broader market despite a tech sell-off. The stock's correlation with the Nasdaq-100 Index has reached a low of negative 0.86, indicating that as tech stocks struggle, Apple remains resilient.
This inverse correlation has not been this pronounced since 2005, suggesting that investors view Apple as a hedge against volatility in the tech sector. Year-to-date, Apple has gained 20%, compared to a 15% increase for the Nasdaq-100. Options trading also reflects confidence in Apple's strength, with a significant volume of call options indicating bullish sentiment.
This trend positions Apple as a unique asset in the current market landscape, particularly as concerns about the AI trade grow