Apple stock experienced a surge after certain consumer electronics were exempted from the 145% China tariffs imposed by the Trump administration. Initially climbing nearly 7.5%, Apple shares settled at a 3.6% increase during late morning trade.
This boost in stock made Apple the top performer in the Dow Jones Industrial Average, contributing to its 1.1% rise. The technology-focused NASDAQ Composite also rose by 1.8%.
Apple Production Shift
Apple has begun shifting a significant amount of iPhones produced in India to the US for sale, in response to initial concerns over the high cost of manufacturing iPhones domestically. As of April 9, Trump reduced the initially proposed 145% tariffs to 10%, although the overall trade-weighted tariff level remains approximately 27%.
The 200-day Simple Moving Average (SMA) has dipped below its 50-day counterpart, indicating a bearish Death Cross pattern. Analysts suggest Apple should surpass the 200-day SMA to regain positivity, currently below $230. AAPL stock is holding above $200, but concerns linger over further tariff uncertainties after the 90-day tariff pause. Long-term support is estimated at $180 and $164.
Apple’s recent rally came as a response to a softening in proposed trade penalties. Initially, the tariffs from Washington approached punishing levels but were later adjusted downwards, lessening investor anxieties. The reversal from 145% to 10% may look drastic, but when put in context, the overall average remains high. That said, the knee-jerk market movement was to be expected.
This reprieve shifted sentiment sharply. It didn’t just push Apple higher—it lifted most major indices, with the tech-heavy NASDAQ reacting with more enthusiasm than the broader Dow. The early spike in Apple’s share price tapered during the session, yet the move still placed it well above peers judging by index contribution.
Apple’s Strategic Response
Apple’s production strategy remains reactive, though tactical. By transferring increased iPhone output from India to the US, they’ve taken steps to manage geopolitical and cost-related exposures. These aren’t minor adjustments—it signals a broader expectation of further regulatory or cost pressures. These kinds of developments may introduce added volatility if policies shift again after the temporary hold expires.
From a technical angle, the picture isn’t quite as upbeat. The crossing of the 50-day SMA above the 200-day is plainly recognised as a Death Cross. This is rarely brushed off by equity traders. Currently, the stock is hovering above $200, though still short of that 200-day average, a level often seen as a rough line between bullish and bearish territory on long-term charts. The value now sits in between layers of support, neither retesting the stronger historical zones near $180, nor breaking convincingly towards recovery.
What we’re watching closely—especially given current price positioning—is whether momentum can overcome that SMA threshold. Bulls will likely require sustained buying volume to make it through. As calendar weeks roll on, we’ll have an eye on whether temporary relief from tariffs continues to provide support, or if unresolved policy keeps a firm hand on the price.
It’s also worth considering broader macro influence. Index-level moves may conceal firm-specific pressure. Though Apple led gains, sector correlation remains high, and the underlying risk hasn’t truly retreated. The repricing after initial news should be treated as that—immediate, not durable.
If stocks begin to drift as sentiment unwinds, downside buffers sit around $180 and further out at $164. These are being watched with more attention now that the short-term upward break has stalled below technical targets. Any move past $230 would provide third-party confirmation of recovery by breaching the previous highs, but absent that, the chart reflects hesitation more than conviction.
In this environment, there is every reason to consider hedging exposures—particularly where reliance on single-name tech remains concentrated. Careful use of options strategies could prove efficient in managing the edges, both for those anticipating continued softness and those preparing for re-engagement near support levels. As we monitor price action around these pivot points, the market is already showing us where positioning stress is most likely to appear next.
