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Apple Inc. (AAPL) experienced a significant rebound on Tuesday, with shares climbing nearly 6% after enduring a four-day losing streak that marked its most severe decline since the dot-com bubble burst in 2000. This resurgence comes in the wake of a 23% drop over the previous four trading sessions, during which Apple ceded its position as the world's most valuable company to Microsoft Corp. (MSFT). The sharp decline erased approximately $774 billion from Apple's market capitalization, reducing it to $2.59 trillion, while Microsoft's market value stood at $2.64 trillion. ​

Broader Tech Sector Rally

The tech sector as a whole saw a positive uptick on Tuesday, despite escalating trade tensions. The Nasdaq Composite Index rose by 2.5%, reflecting gains across major technology firms. Tesla Inc. (TSLA) shares increased by 6%, though the stock remains down more than 40% since the inauguration. Nvidia Corp. (NVDA) gained over 5%, while Microsoft added about 3%. Meta Platforms Inc. (META), Amazon.com Inc. (AMZN), and Alphabet Inc. (GOOGL) each saw increases of approximately 1%. ​

Impact of Global Tariffs

The recent market fluctuations are largely attributed to the implementation of sweeping global tariffs by the U.S. administration. President Donald Trump's "Liberation Day" tariffs imposed a 104% duty on Chinese imports, with additional levies of 20% on the European Union and 24% on Japan. In retaliation, China announced an 84% tariff on U.S. goods, exacerbating fears of a prolonged trade war. ​

Semiconductor Stocks Respond

Semiconductor companies, which had been under pressure due to concerns that tariffs could stifle demand for consumer products, also experienced a rebound. Advanced Micro Devices Inc. (AMD) climbed more than 5%, while Intel Corp. (INTC) added 7%. Other semiconductor firms, including On Semiconductor Corp. (ON), Broadcom Inc. (AVGO), and Apple suppliers Qorvo Inc. (QRVO) and Skyworks Solutions Inc. (SWKS), each saw gains exceeding 4%. The VanEck Semiconductor ETF, which tracks the sector, edged up by 3%. ​

Analyst Perspectives

Analysts remain cautiously optimistic about Apple's prospects. Bank of America reaffirmed its "buy" rating on the stock, citing stable cash flows, resilient earnings, and growth potential in artificial intelligence. The firm set a price target of $250, representing a potential 45% gain from recent levels. ​

Market Outlook

While Tuesday's rebound offers a respite for tech investors, the market remains volatile amid ongoing trade disputes and tariff implementations. Companies with significant exposure to international markets, particularly those reliant on Chinese manufacturing, may continue to face headwinds as geopolitical tensions evolve.​

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