Apple shares surged over 3% following better-than-expected second-quarter earnings and revenue guidance, while the US navigated a partial government shutdown and rising gas costs.
Apple's Strong Earnings Beat Expectations
Apple's stock saw a significant jump after the company surpassed analyst expectations for both revenue and earnings in the second quarter. Furthermore, the firm issued positive revenue guidance for the current quarter.
Key takeaways from Apple's performance include:
- Revenue Growth: Despite iPhone sales falling below expectations for the second consecutive quarter, overall phone revenue increased by 22% compared to the same period in 2025.
- CEO Commentary: CEO Tim Cook praised the iPhone 17 as "the most popular lineup in our history," noting that total revenue exceeded estimates despite supply constraints.
- Market Warning: Cook also cautioned analysts about the global memory crunch, stating that memory costs are expected to increasingly impact the business. This concern was echoed by Meta and Microsoft, who cited higher memory prices in their increased capital expenditure forecasts.
US Government and Policy Updates
In Washington D.C., President Donald Trump signed a bill that funded most of the Department of Homeland Security (DHS), thereby ending a months-long partial government shutdown. However, this funding package notably excluded appropriations for Immigration and Customs Enforcement and parts of Customs and Border Protection.