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. Thursday tested that safe-haven trade.
Why Did Apple Stock Rally Before the Crash?
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%.
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.
How Did Apple Stock Hold Up in the Crash?
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%.
Apple fell about 1.5% to around $344, according to TradingView. Nvidia fell 9% and Broadcom 10%.
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.
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.
What’s Next for Apple Stock?
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.
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.
Valuation remains a risk, with Apple trading near 36 times forward earnings. Further tech selling is the larger threat to the setup.
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