New York, Feb 2, 2026, 17:52 EST — After-hours
Apple (AAPL.O) shares rose 4.1%, finishing Monday at $270.01. After-hours trading saw the stock dip 0.6% to $268.31, following a volatile regular session where prices fluctuated between $259.21 and $270.49 on heavy volume. (StockAnalysis)
The move followed a weekend policy update in India granting foreign companies five years of tax certainty when supplying equipment to contract manufacturers in designated zones. This tweak could ease obstacles for Apple’s growing iPhone production in the country. “This exemption removes a key deal-breaking risk for electronics manufacturing in India,” said Shankey Agrawal, partner at BMR Legal. (Reuters)
Why it matters now: Apple is ramping up its focus on India to expand manufacturing outside China, with the market viewing any policy support as a quick boost. This also highlights that the company’s supply chain narrative remains active, even after its blockbuster holiday quarter.
Investors are grappling with Apple’s latest earnings and outlook, which forecast double-digit growth for the March quarter despite warnings about supply bottlenecks. CEO Tim Cook told analysts, “We’re currently constrained,” pointing to a global memory-chip shortage that he expects will weigh more heavily on second-quarter gross margins — the profit metric after production costs — as component prices climb. (Reuters)
Those constraints are the catch. The stock has surged, yet the market grapples with pricing in two conflicting factors: steady demand and a cost environment that could tighten if component supplies shrink again.
The broader market gave a boost. The S&P 500 climbed 0.54%, while the Nasdaq rose 0.56%, driven by a rotation back into tech and chip-related stocks. “The fundamentals are good and earnings are strong,” noted Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. Concerns lingered over a partial U.S. government shutdown after the Bureau of Labor Statistics announced the January employment report wouldn’t be released Friday. The House is debating legislation to end the shutdown, with a vote expected Tuesday. (Reuters)
Traders watching Apple will be focused on whether the India tax adjustment truly accelerates factory expansions and boosts exports, or simply reduces a legal headache without impacting short-term production. The pace at which supply bottlenecks resolve remains critical, as questions around margins persist.
The downside is clear: if memory and processor supply issues drag on, Apple could face steeper costs. Add in any fresh jitters on risk appetite triggered by macroeconomic headlines, and trouble could mount. After a sharp one-day jump, much of the positive news seems priced in already.
Investors are focused on Apple’s dividend schedule next: a $0.26 per share payout is set for Feb. 12, hitting accounts for those on the record as of Feb. 9. The tech giant’s annual shareholder meeting follows on Feb. 24 and will take place virtually. (Apple)
