Apple Stock Rises Nearly 3% as Fed Eases Inflation Concerns

After a sharp selloff triggered by product price hikes, Apple shares rebounded nearly 3% on July 3 as the Fed signaled a measured response to inflation. The June 25 announcement of ~20% increases on MacBooks, iPads and other devices to offset memory-chip costs erased $250 billion in market value and pressured Asian tech suppliers. Microsoft and Amazon followed with similar hikes, amplifying fears of stretched AI spending, while Micron surged on strong demand. Investor caution peaked at a 34x earnings multiple amid doubts over Apple's AI strategy, but the latest relief rally highlights a shift back to fundamentals.