Breaking: Apple Developers Conference Returns June 9!

Stock Performance and Market Sentiment

Apple’s stock performance has been steady in the run-up to WWDC, with shares jumping 16% year-to-date, giving it a market capitalization of $3.4tn. The stock has been relatively unaffected by the latest jobs report, which showed a US labor market that’s cooling, but not at a pace that economists find concerning.

The Nasdaq Composite (^IXIC) was up about 2.3%, and the S&P 500 (^GSPC) rose roughly 1.3%. The Dow Jones Industrial Average (^DJI) was up about 0.3%. The week’s highlights include the June Federal Reserve meeting and a key inflation reading on Wednesday. The first reading of consumer sentiment for June is also expected on Friday.

In corporate news, Big Tech will kick off the week with Nvidia’s (NVDA) 10-for-1 stock split and Apple’s (AAPL) Worldwide Developer’s Conference both set for Monday. A vote on Tesla (TSLA) CEO Elon Musk’s $56 billion pay package is expected on Thursday. Meanwhile, chaotic moves in GameStop stock (GME) have continued to garner investor attention as the return of Keith Gill, a popular leader of the 2021 meme stock frenzy, has reignited interest.

Expectations for Apple’s Stock Performance After WWDC

Derren Nathan, head of equity research at Hargreaves Lansdown, said the “key is whether the integration with artificial intelligence will be enough to prompt an acceleration in upgrades to the newest handsets. It will be a few months before we see how that’s playing out”. Shares jumped after the company unveiled Apple Intelligence at the 2024 Worldwide Developers Conference in June.

Economic Data and Interest Rates

The latest economic data and interest rate expectations are expected to have a significant impact on Apple’s business and the tech industry. The next update on inflation is expected on Wednesday morning with the release of the May Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, unchanged from April.

Prices are set to rise 0.1% on a month-over-month basis, down from 0.3% in April. On a “core” basis, which strips out the volatile food and energy prices, inflation is expected to have risen 3.5% year over year, a slowdown from the 3.6% increase seen in April. Monthly core price increases are expected to clock in at 0.3%, unchanged from the prior month.

Implications for Investors and the Broader Market

The release of the CPI data will come just hours before the Fed’s latest policy decision, where markets largely expect the central bank to keep rates unchanged. This pushes the main focus to the Fed’s latest Summary of Economic Projections (SEP) — including its “dot plot,” which maps out policymakers’ expectations for where interest rates could be headed in the future — as well as commentary from Fed Chair Jerome Powell.

Practical Aspects and Analysis

Siri 2.0 and Generative AI

Apple’s Siri is due to get an update from this generative AI, marking its biggest upgrade since its release in 2010. The new Siri features and capabilities are expected to improve user experience and productivity. Practical applications and use cases for Siri 2.0 include controlling individual features within apps, providing proactive tips, and responding to random questions.

Apple Intelligence and AI Integration

Apple’s AI integration is expected to have a significant impact on apps and services. The company has been holding talks with OpenAI to license its GPT software and separate talks with Google to license its Gemini software. The integration of Apple Intelligence is expected to touch a host of other apps, including Messages, Notes, and Safari.