Apple shares rose 2.3% after an analyst upgrade, lifting the S&P 500 tech sector 1.5%. The read-through hit chipmakers and suppliers ahead of earnings on July 24.
Apple shares rose 2.3% on Monday, pushing the broader tech sector higher after an analyst upgrade cited strong iPhone demand. The S&P 500 information technology index climbed 1.5% in sympathy, with chipmakers and software names following Apple's lead.
The upgrade from Morgan Stanley highlighted a resilient upgrade cycle in the U.S. and China, two of Apple's largest markets. The firm raised its price target to $245 from $230.
Apple's move rippled through the sector. NVIDIA gained 1.8%, Microsoft added 1.2%, and the Invesco QQQ Trust rose 1.3%. The read-through was straightforward: if the largest U.S. company by market cap can sustain demand, the rest of the tech supply chain benefits.
Several suppliers to Apple also rose, including Skyworks Solutions and Qorvo, each up more than 2%. The Philadelphia Semiconductor Index advanced 1.7%.
The rally comes ahead of Apple's fiscal third-quarter earnings, scheduled for July 24. Analysts expect revenue of $85.3 billion, up 3% year over year, according to Bloomberg consensus.
For now, the sector's direction hinges on whether Apple can deliver a beat and raise guidance. A miss would reverse the read-through and pressure the broader market.
Apple is scheduled to report earnings on July 24.
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