What's Driving Apple's Stock To All-Time Highs?

Apple shares were trading above $236 Friday afternoon, building on the positive momentum seen for much of the year. The stock’s previous peak was $233.47, hit on Oct. 3, 2018.

The stock shed about 6% in 2018, dragged down by poor reception to the iPhone 10 line-up launched in the year, the broader market downturn and simmering U.S.-China trade tensions.

Bad Start, But Good Going

Although it’s been a good year for Cupertino, it didn’t start well: Apple lowered its December quarter revenue guidance in early January, reducing its outlook for the first time in 20 years.

The stock lost about 10% in a single session Jan. 3 before taking off on a strong rally that was interrupted by a short downtrend that began in early May and lasted about a month through June 3.

For the year-to-date period, Apple gained about 48% through Oct. 10 versus the Nasdaq Composite’s 29% advance and the S&P 500’s 19% gain.

Source: Y Charts

See also: As Trade Talks Approach, “Barometer” Stocks Like Apple And Boeing Could Be In Focus

Headwinds Become Tailwinds

Trade Tensions De-Escalate

After remaining a thorn in the flesh for the market and the economy for about two years, signals of a likely resolution to the long-standing U.S.-China trade tensions are emerging.

High-level officials from both sides have are in talks, with President Donald Trump expressing hopes of a positive outcome.

Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days. I will be meeting with the Vice Premier today. All would like to see something significant happen!

— Donald J. Trump (@realDonaldTrump) October 11, 2019

The imposition of tariffs on Chinese imports and a potential retaliation by China would hurt Apple, as it counts China not

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