Apple leads big tech stocks higher and nears intraday record

Apple Inc. gained as much as 2.9%, putting the iPhone maker within striking distance of an intraday record, as well as on track for an all-time closing high.

Representational image. (Reuters)

Shares of mega-cap technology and internet companies rose on Monday, with the group extending strong 2020 advances.

Apple Inc. gained as much as 2.9%, putting the iPhone maker within striking distance of an intraday record, as well as on track for an all-time closing high. The stock has risen about 85% thus far this year, and it is poised to close out its second straight year with a gain above 80%.

The stock is up nearly 25% since the start of November, with recent gains coming on a report that Apple plans to build a self-driving car and is targeting 2024 to produce the vehicle. In a note published Dec. 27, Piper Sandler wrote that an electric-vehicle revenue stream “could add another leg of growth in addition to a higher multiple” for Apple.

Among other stocks, Facebook Inc. rose 1.9% on Monday, Amazon.com Inc. added 2.1%, and Google-parent Alphabet Inc. climbed 1.7%. Microsoft Corp. gained 1.2%. All have outperformed the broader market this year; Alphabet is the weakest performer of the bunch, up almost 32%, but that move is roughly double the 15.6% rise of the S&P 500.

The S&P 500 Information Technology Index rose 1.2% to touch an intraday record. The Nasdaq-100 Index rose 0.9% on Monday, roughly in line with an 0.8% gain of the S&P 500, which hit an all-time high. Broader markets got a boost after President Trump signed a $2.3 trillion Covid-19 relief and government funding package.

While big-cap tech rose, some of the market's most prominent “stay-at-home” stocks underperformed. Zoom Video Communications fell 4.3%, while Peloton Interactive lost 4.3% and Shopify declined 3.8%.

Written by Ryan Vlastelica.