The article discusses the historical performance of the Dow Jones Industrial Average and the S&P 500, noting a divergence in their performance over shorter periods due to the rising prominence of tech stocks in the S&P. While the Dow remains an important economic indicator, the article highlights that in the short term, tech stocks like Apple have affected these indices differently, with Apple experiencing revenue growth in services despite challenges in smartphone sales. Looking ahead, analysts anticipate a 'supercycle' for Apple related to its upcoming products.
Last year, the Dow was up 13% while the S&P rose 23%. Over 50 years, they remained nearly identical but diverged in shorter periods.
Despite Apple’s stock lagging the Dow, its services business saw a 14% rise, indicating potential for growth even with iPhone sales declines.
The Dow remains a key economic barometer, with a high likelihood of rebounding over the next five years despite current downs.
Apple's iPhone 16 could reignite sales in China, and analysts expect a 'supercycle' in 2025-2026 following its successful AI features.
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