Insights 
VT 
Key Points:
- Apple stock surged 6.1% to $210.79 after a 90-day U.S.-China tariff truce was announced.
- Manufacturing remains highly exposed to China, with 90% of iPhones produced there.
Apple shares (AAPL) soared on Monday, closing at $210.79—a 6.1% jump—after President Donald Trump confirmed a 90-day suspension of steep tariffs on Chinese goods. The move reassured traders who had been rattled by recent trade tensions, particularly regarding Apple’s heavy reliance on Chinese manufacturing.
The rebound positions Apple among the biggest winners of the session, leading gains in the so-called Magnificent Seven. Yet, the year-to-date chart remains negative, with the stock still down over 13% in 2025, weighed by ongoing geopolitical risk and supply chain vulnerability.
Trump’s earlier announcement in April that Chinese goods would face tariffs as high as 145% sent shockwaves through the market. Apple stock fell sharply in response, as the company assembles roughly 90% of its iPhones in China—a product responsible for about half of its quarterly revenue.
CEO Tim Cook addressed the issue during Apple’s earnings call on May 1, revealing plans to expand iPhone production in India. While this strategy may diversify production lines and reduce cross-border exposure, it introduces new logistical and cost complexities that could weigh on margins in the near term.
The updated tariff rate, now lowered to 30% for the 90-day period, offers temporary relief but does little to solve the broader uncertainty. Trump, in a press conference on Monday, expressed confidence that Apple could localise more of its operations. “I spoke to Tim Cook this morning… he’s going to be building a lot of plants in the United States for Apple,” he claimed, hinting at a $500 billion domestic investment roadmap.
Technical Outlook
Apple (AAPL) staged a powerful recovery from the 193.24 low, breaking through the $210 psychological barrier with a sharp rally that peaked at 211.35. The surge was backed by a significant MACD bullish crossover and a strong uptick in histogram bars, signalling intense short-term momentum. The price is now consolidating just above the 10-period moving average, with the 30-period MA beginning to turn upward—typically a supportive shift for medium-term trend continuation.
Picture: AAPL rebounds from $193 low, rallies to $211 peak with momentum cooling, as seen on the VT Markets app
Despite a slight cooldown in MACD momentum and histogram contraction, the fact that AAPL is holding above 208 suggests dip-buyers are still active. As long as the price remains above the key moving averages and the structure of higher lows is preserved, upside continuation toward 213–215 remains a possibility. Watch for a clean break above 211.35 for confirmation.
Cautious Forecast
While near-term upside may continue if sentiment around trade talks remains constructive, volatility remains likely. If Apple fails to clarify its long-term manufacturing roadmap or if the tariff truce collapses, the stock could retest previous lows below $200. Traders should brace for a bumpy transition as Apple navigates between China, India, and potential U.S. reshoring.
