Apple Shares Surge 13% After $100B U.S. Investment Pledge

Apple's stock surged 13% this week, marking its largest weekly gain since July 2020, following a high-profile White House event where CEO Tim Cook joined President Donald Trump to announce a $100 billion investment in American companies and domestically produced components over the next four years. This commitment to increase procurement of U.S.-made chips aligns with President Trump's push for domestic manufacturing and earned Apple an exemption from proposed tariffs that could have doubled the cost of imported chips, alleviating investor concerns about tariff-related costs that Apple had warned could exceed $1 billion in the current quarter. The stock rally significantly boosted Apple's market capitalization by over $400 billion to $3.4 trillion, making it the third-largest company by market value, ahead of Alphabet and Amazon. Analysts, including J.P. Morgan's Samik Chatterjee, praised Apple's adept management of tariff uncertainties, maintaining an overweight rating on the stock, while Apple’s recent earnings showed a 10% increase in total revenue and a 13% rise in iPhone sales for the June quarter. The announcement also helped lift broader market sentiment, with Apple alone accounting for a substantial portion of gains in the S&P 500. Overall, the combination of strong earnings and strategic alignment with Trump’s trade policies propelled Apple to its best weekly performance in years.