Apple closes in on $5T to reclaim most valuable company title, SpaceX correction continues
The twin moves crystallized a growing divide between companies rewarded for capital discipline and those that bet heavily on speculative infrastructure, a divide that financial advisors are increasingly being asked to navigate on behalf of clients.
A market splitting in two
Looking at the broader market, the Dow Jones Industrial Average rose 262.83 points, or 0.51%, to close at 52,210.08; The S&P 500 added just 0.02%, closing at 7,413.18; and the Nasdaq Composite lost 0.18% and settled at 24,932.08, as semiconductor stocks were down broadly.
The selling pressure has carried into Tuesday with US tech stocks losing before the bell as a sell-off in Korean memory makers highlighted concerns about AI circular financing deals. Contracts on the Nasdaq-100 fell 0.9%, while those on the S&P 500 dropped 0.2%. South Korea’s Kospi tumbled over 10% as investors dumped shares in top memory chipmakers SK Hynix and Samsung Electronics, which sank more than 14% and 13%, respectively.
Sentiment on the AI trade has soured amid reports that Nvidia is exploring a $250 billion funding backstop for OpenAI, further intertwining the two companies and heightening worries about circular financing. Tech traders also grew nervous that Chinese competition is narrowing the AI gap with US companies, undermining prospects for a payoff.
Apple’s disciplined AI strategy pays off
Apple’s ascent is the mirror image of the chip sector’s distress. Apple shares have climbed more than 22% year to date, outperforming the Magnificent Seven group, as investors increasingly view the company’s restrained AI spending as a strength rather than a weakness.
