Apple Inc. (NASDAQ:AAPL) shares closed on Monday about 16% off their year-to-date highs — not a major drop in the bigger picture, but investor sentiment (according to my proprietary readings) remains worryingly high. To be sure, even with Monday’s 2.6% drop in the S&P 500, AAPL stock “only” shed 2%.
Ultimately, however, the dynamics of Apple stock’s large market cap and presence in just about everyone’s portfolio stands a good chance of weighing on AAPL stock more in the near to medium-term.
After Monday’s broad-market selloff, the benchmark S&P 500 is now lower by nearly 12% since the highs in May. As I often point out, correlation among stocks and sectors tends to spike during risk-off periods. This fact alone makes it unlikely that shares of Apple stock will be able to buck the trend and somehow shoot higher as global risk assets get dumped.
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