Apple Tumbles as Elevated Valuation Raises Interest-Rate Concerns

Apple's share price is hovering around $305 on August 12, down about 1.1% intraday after opening near $307.75.

The release of the US inflation report has provided some support to growth stocks, including Apple, as the data shows July CPI rose just 0.1% month over month and annual inflation slowed to 3.4% from 3.5%.

However, despite the positive macro effect, Apple's stock is sensitive to shifts in Treasury yields and interest-rate expectations due to its elevated valuation of around 35 times earnings.

The company recently reported a strong fiscal third quarter with revenue rising 16% year over year to $109.4 billion and diluted earnings per share increasing 29% to $2.02.