Technology rally in global markets
Apple, whose sales and profit expectations exceeded analyst estimates and announced the largest share buyback program in US history, rose nearly 8 percent in the futures market. The decision lifted tech stocks in the US and Asia.
The positive atmosphere created by Apple’s balance sheet led to a stock rally led by technology companies in Asia. While the Hong Kong Hang Seng index rose for the ninth consecutive trading day, the Hang Seng Technology index increased by up to 4.1 percent.
Chinese tech giants Alibaba, Tencent and JD.com climbed to new 2024 highs. Stock markets in Japan and mainland China are closed for holidays, while Australian and South Korean indices also rose.
The Apple effect is also felt in American stock futures. Nasdaq 100 futures rose 0.7 percent in the morning hours. Bloomberg Dollar Index, which decreased by 0.7 percent on Thursday, continued its decline by 0.1 percent this morning. This week’s volatile currency, the Japanese yen, hit a three-week high against the dollar and is poised for its best week since December 2022. The US 10-year bond yield fell five basis points to 4.58 percent.
Spot gold fell by 0.1 percent and was sold at $2,300 per ounce.
Share buyback decision in Apple
Apple’s balance sheet and future forecasts, which were expected to be an important catalyst before the US non-farm employment data, were positive.
Although Apple revenues decreased by 4.3 percent annually to $90.8 billion in the quarter ending March, this figure exceeded the expectation of $90.3 billion.
While net profit also exceeded Wall Street projections, Apple announced the largest share buyback program in US history with $110 billion. Apple also predicted that sales revenue will grow in the current quarter, albeit in low single digits. Apple, which predicts double-digit growth in iPad and service revenues, but does not disclose iPhone projections, has experienced a sales revenue decline in five of the past six quarters. The results gave investors a breath of fresh air.
Apple shares rose up to 7.9 percent in the futures market. Apple shares fell 10 percent this year to $173.03.