Apple’s Big Event and Market Movements: What to Watch This Week

Market Movements: Apple’s Big Event and Key Price Levels to Watch This Week

Apple (AAPL) shares are set to be a major focus on Monday as the tech giant prepares for its highly anticipated “Glowtime” product launch event. The event is expected to showcase the new AI-powered iPhone, alongside other devices and details on significant software updates, including the Apple Intelligence-enabled iOS 18.1.

Since a correction in early August, Apple’s stock has surged approximately 13%, leading up to the event. This rally raises the potential for a “sell-the-news” scenario. According to Morgan Stanley, Apple’s shares have historically underperformed the S&P 500 on the day of an iPhone launch but tend to modestly outperform in the subsequent three months.

Key Price Levels to Watch

Recent Stock Movement

Following a record high in mid-July, Apple’s stock saw a 17% retracement to an early June breakout area before recovering most of that decline in August. Recently, the stock closed below the 50-day moving average (MA), with trading volumes indicating weak conviction behind last week’s decline. On Friday, Apple shares fell 0.7% to $220.82 amid a broader technology sector downturn.

Support Levels

Investors should monitor the following support levels:

• $218: This level aligns with a trendline from June and July trading activity.
• $207: This level corresponds with the June 11 breakout candlestick close and the June pullback low.
• $196: A significant downside move could see the stock retest this level, where it might find support near the rising 200-day MA.

Resistance Level

If Apple shares gain momentum leading up to the event, they may face resistance around $233. This area is near the stock’s all-time high (ATH) and could be a point for profit-taking.

Broader Market Trends

Stock futures are indicating a higher open for major U.S. indexes on Monday, rebounding from their worst week of the year. Futures for the S&P 500 and Dow Jones Industrial Average are up 0.8% and 0.7%, respectively, while the Nasdaq futures have gained 0.9%. Friday’s market decline followed a weaker-than-expected August jobs report, with technology stocks leading the downturn.

Pre-Market Movements

In pre-market trading, major tech stocks are gaining ground. Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), and Amazon (AMZN) are all seeing positive movement. Apple is up 0.5% ahead of its event.

Chip stocks, which saw sharp declines on Friday, are recovering, with the VanEck Semiconductor ETF (SMH) up over 1%. Key chipmakers like Arm Holdings (ARM), Broadcom (AVGO), Qualcomm (QCOM), and Intel (INTC) are advancing.

Boeing (BA) shares have risen more than 4% following a tentative agreement with two of its unions, potentially avoiding a strike.

Economic Data and Federal Reserve Expectations

The economic data calendar for Monday is light, but the upcoming release of inflation data later in the week will be closely watched. The Consumer Price Index (CPI) report for August is expected to give the Federal Reserve crucial information as it considers cutting the fed funds rate for the first time in four years. The Fed is expected to meet on September 17-18, with speculation of a potential rate cut influencing market expectations.

The yield on 10-year Treasurys, sensitive to interest rate expectations, was around 3.75% on Monday morning, up from 3.72% late Friday. Gold futures are holding steady at around $2,520 an ounce, while Bitcoin remains relatively unchanged at around $55,000.

Corporate Events This Week

• Monday, Sept. 9: Apple’s event, Goldman Sachs Communacopia & Technology Conference begins, Oracle reports earnings.
• Tuesday, Sept. 10: NFIB Small Business Optimism Index, GameStop and other companies report earnings.
• Wednesday, Sept. 11: CPI report, Oxford Industries and Designer Brands earnings.
• Thursday, Sept. 12: Initial jobless claims, Producer Price Index, Adobe and Kroger report earnings.
• Friday, Sept. 13: Import/export price index, consumer sentiment report.

Apple’s launch event and other corporate earnings reports will set the stage for market movements this week. Stay tuned for updates as these developments unfold.

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