Apple Stock Under Pressure as Bond Market Yields Soar
Apple's stock price has been under pressure due to rising bond market yields. The company's shares have struggled to hold above $336, with a current price of around $330.55. This is partly due to the increase in the 10-year Treasury yield, which rose to 5.04% on September 15, its highest level since 2007.
The high valuation of Apple makes it vulnerable to rising yields, as a higher risk-free rate increases the discount rate and reduces the value of future cash flows. Despite this, analysts remain positive about the new iPhone cycle, with Bank of America maintaining its Buy rating but cutting its target to $370 from $380 due to weaker expected gross margins.
The latest earnings provide Apple with a solid fundamental base, with consensus pointing to EPS of around $1.98 for the current quarter and $8.85 per share for FY2026. However, investors may demand stronger proof that the new iPhone cycle is accelerating earnings, not just revenue, if yields continue to rise.