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Apple’s March to $3 Trillion Carries Virus-Risk Warning for S&P

  • Prior trillion-dollar milestones preceeded stock corrections
  • Store closures hint at risk for economy as infections mount
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Chart of the Day: Apple at $3T Comes With a Warning

Apple Inc., whose shares serve as a real-time proxy for risk sentiment toward the pandemic, is near a $3 trillion market capitalization. If history is any guide, that milestone may signal a technical correction is ahead, for both the stock and the broader market.

Today’s Chart of the Day shows Apple shares on a logarithmic scale, measuring the acceleration of the share price over the last four years. It also shows the last time Apple hit trillion-dollar milestones. When the iPhone-maker reached $1 trillion in market cap, a roughly 40%, months-long drop in the share price followed. At the $2 trillion mark, the stock faced a bear market with a 20% slump over a period of weeks.