Apple Shares Unscathed Amidst Tech Rout: AI Trade Fears Unlikely to Dent Resilient Stock

Apple's stock has been surprisingly resilient amidst a broader tech rout, defying expectations and behaving like a 'safety trade' for investors. The company's shares rose 2.6% on Tuesday, outperforming the Nasdaq-100 Index by a significant margin. According to data from ThinkOrSwim, Apple's 30-day correlation with the Nasdaq-100 has reached a low of negative 0.86, its lowest level in over two decades.

This inverse correlation is not new for Apple, but it has never been this pronounced or sustained. In fact, the last time Apple's stock behaved like this was during the first quarter of 2024, when investors were shifting money into AI disruptors. Dave Mazza, CEO of Roundhill Investments, attributes Apple's stability to its lack of exposure to the AI trade.

Options traders seem to agree with this assessment, as almost 1.5 million calls traded on Tuesday, compared to less than 700,000 puts. This bullish positioning is further reinforced by heavy volume, with Apple options being second-most traded on Tuesday at a level twice the 30-day average.