What happened
Apple's (AAPL -0.35%) stock price climbed 3.2% on Tuesday, despite a sharp fall in the major market indices.
So what
Investors were startled by comments from Federal Reserve Chair Jerome Powell, which suggested that the powerful central bank could pull back on stimulus measures sooner than it forecasted. Many analysts had expected the Fed to adopt a more supportive stance toward the economy after health officials detected a worrisome new coronavirus strain that threatens to derail the market's recovery.
Powell's comments, however, indicated that this might not be the case. Investors reacted by selling off many stocks. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, in turn, all fell more than 1.5% on the day.
Image source: Getty Images.
Yet Apple bucked that trend. The tech giant appears to be serving as a bastion in the storm for investors seeking the means to protect their wealth during a possible stock market crash.
Now what
Shareholders no doubt appreciate Apple's tremendous profit and cash flow generation, as well as its fortress-like balance sheet. The iPhone maker produced a staggering $95 billion in net income and $93 billion in free cash flow over the past 12 months. It also has a staggering $190 billion in cash and investments in its coffers.
This unrivaled financial fortitude makes Apple able to withstand even the worst market downturns, while continuing to reward its shareowners with massive stock repurchases and a steadily rising dividend income stream.
Moreover, Apple has some promising long-term growth initiatives that could propel its stock to even greater heights. The tech leader is reportedly working on some intriguing virtual and augmented reality projects, as well as a self-driving car venture. When combined with its highly regarded chip development efforts for its iPhones, Macs, and iPads, Apple's bold new bets suggest that technological innovation is alive and well in this now $2.7 trillion behemoth.
