Analyst warns Apple stock may face challenges in January due to recent rally

From Investing.com: 2024-12-26 09:45:00

Apple Inc’s recent rally may face challenges in the new year, with BTIG noting the company’s five consecutive weeks of gains over 2%, a trend last seen in 2010. Historical data shows that after similar rallies, Apple’s average one-month return has been negative 6%, with only one positive outcome in 2009.

The analyst pointed to a surging dollar and rates causing dispersion beneath the surface, with last week’s drawdown potentially signaling more turbulence ahead. Apple’s nearing $4 trillion market cap warrants caution in January, especially as rising U.S. dollar strength and high 10-year yields could impact large-cap growth stocks.

Despite the S&P 500 poised for a strong year-end close, with a potential new high above 6100, BTIG warns of downside risks in January due to potential market volatility. The analyst highlights potential divergences in breadth and momentum if the SPX reaches new highs, raising red flags for the start of the new year.



Read more at Investing.com: Why this analyst thinks Apple stock has ‘a difficult set-up for January’ By Investing.com