The Federal Reserve money machine is creating a first in the U.S. stock market: a multi-trillion-dollar company.
Apple became the first publicly listed U.S. business with a $2 trillion market value. On Wednesday, the iPhone maker’s stock hit $468.65, or roughly a market capitalization of $2.004 trillion.
Apple now represents approximately seven percent of the S&P 500’s total market value. To put this into perspective, Apple’s market cap is equal to the index’s 200 smallest tickers.
Apple is not the only trillion-dollar company: Amazon, Microsoft, and Alphabet are all worth more than $1 trillion.
How did Apple get to where it is right now? From Reuters:
Those and other heavyweight technology companies have surged to record highs during the coronavirus pandemic as consumers rely more on ecommerce, video streaming and other services they provide. Investors are betting these companies will emerge from the pandemic stronger than smaller competitors, with some even viewing their volatile shares as safe havens.
Apple’s revenue grew across every category and all of its geographical regions in the June quarter, even as the coronavirus crisis caused the U.S. economy to contract at its worst rate since the Great Depression.
Apple surprised Wall Street as it was able to get loyal shoppers to buy iPhones, iPads and Macs online even as several brick-and-mortar stores remained closed due to the coronavirus lockdowns.
Its economic output is beyond Peru and Portugal.
Of course, with historically low interest rates and a Fed pumping money into a market that primarily benefits finance and tech, Jerome Powell should be given some kudos, too.
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