Wall St rallies as Apple hits $3 trillion in market cap

Apple Inc's market capitalization on Friday breached the $3 trillion mark for the first time since January 2022, as investors bet on the iPhone maker's ability to grow revenue.

Shares of Apple, which is also the world's most valuable- listed company, were up 1.6 per cent at $192.6, after touching a record high of $193.15 during the day.

The shares of Apple have jumped nearly 46 per cent this year and, at the current price, the company's market value stands at around $3.02 trillion.

On January 3, 2022, during intraday trading, Apple's market capitalisation momentarily surpassed $3 trillion before the session ended barely below that threshold.

The company's less-than-expected fall in sales in its most recent quarterly report has highlighted the tech giant's resiliency in an uncertain economy, making it an investor favorite.

"Apple is navigating the macro slowdown and inflationary pressure on consumer spending by consistently gaining share from Android phones," reported Reuters citing Citigroup analyst Atif Malik.

The gains in Apple shares come as technology stocks rebound on bets that the Federal Reserve may be slowing its pace of interest rate hikes as well as on the buzz around artificial intelligence.

Apple's better-than-expected iPhone sales during its second quarter and the introduction of new products, including an augmented-reality headset called the Vision Pro in June, highlight the tech giant's resiliency in an uncertain economy.

Apple's 12-month forward price-to-earnings multiple (P/E), a common benchmark for valuing stocks, is 29.49, well above the sector median of 13.14, according to Refinitiv data, reported Reuters.

Currently, four other US companies have a valuation of more than $1 trillion — Alphabet Inc, Microsoft Corp, Amazon.com Inc and Nvidia Corp.

The S&P 500 was 1.2% higher in afternoon trading. The Dow Jones Industrial Average was up 281 points, or 0.8%, at 34,403, as of 1:28 p.m. Eastern time, while the Nasdaq composite was 1.5% higher.