Apple AAPL shares closed at $165.30, all-time highs on Tuesday. The stock was up more than 3% as investors flocked to the iPhone maker amid a broader market selloff.
It seems like a flight to safety trade, according to Matt Maley, managing director equity strategist Miller Tabak, told Yahoo Finance on Tuesday.
Some analysts believe that the company's impressive cash flows would help it weather any future downturn.
The stock's upward movement came on the same day Fed Chair Jerome Powell indicated that the Federal Reserve would talk about the possibility of accelerating its tapering program at its next FOMC meeting in order to combat inflation. Powell also said that it's time to retire the word 'transitory' when talking about inflation.
The 10 year Treasury yield TNX fell to 1.44% by mid-afternoon and investors bought up Treasuries.
I just wonder if people are saying that the Fed is going to tighten faster than they are saying, "should I be looking at something else," Maley said. I need something else besides Treasuries and what better than an Apple computer? Maley believes that Apple could benefit from consumers looking to buy products in the future if they go up in price next year.
If you want to have a flight to safety and exposure to strong consumer spending into the holiday, Apple's computer is a good play, he said.
All 11 sectors of the S&P 500 were in the red today due to the broader sell-off, with Information Technology stocks, helped by Apple's performance, losing the least.