Apple Surges on Treasury Buybacks and Strong Earnings

Apple's shares are up by approximately 2.2% today and trading around $317, nearing its intraday high of $317.03. The rise is attributed to a combination of factors, including the technology sector's broader recovery and Apple's strong fundamental base following its latest earnings report.

The U.S. Treasury's decision to at least double the volume of buyback operations for long-term fixed-coupon Treasuries also played a significant role in supporting the market. Starting September 9, the maximum size of a single operation in the 10-20 year and 20-30 year segments will increase from $2 billion to at least $4 billion.

The Treasury buybacks led to a decline in long-term yields, with the 10-year yield falling to around 4.65% and the 30-year yield dropping to 5.21%. This reduction in risk-free rates makes expensive technology stocks more attractive, particularly for companies like Apple with high valuations.

Apple's strong results from its iPhone, Mac, and Services segments, as well as a gross margin of 50.1%, contributed to the company's positive performance. However, around 2 percentage points of this result were supported by tariff refunds.