In a remarkable rally driven by expectations of interest rate cuts by the Federal Reserve, Apple Inc. shares soared to a record high on Wednesday. The surge in the iPhone maker's stock, along with a broader rally in technology stocks, comes as investors anticipate a slowdown in inflation.

Closing at $197.96 per share, Apple's stock climbed 1.7%, surpassing its previous closing record set in July. This remarkable gain has propelled the company's shares up by 52% for the year and firmly establishes its market capitalization at approximately $3.08 trillion, solidifying Apple's position as the world's most valuable company.

Apple's recent surge coincides with a rise in other technology stocks over the past month, largely influenced by a decline in US Treasury yields. The decreasing yields, coupled with indications of cooling inflation and a resilient economy, have driven investor confidence. Wednesday's decision by central bankers to hold interest rates steady for a third meeting and project a series of cuts next year only served to reinforce this positive sentiment. As a result, the 10-year Treasury fell to the lowest level since August, inching closer to sliding below 4%.

This current upswing in the stock market for Apple represents a significant reversal from October, when concerns about revenue growth and Chinese sales had caused the stock to close at its lowest point in approximately five months.

Apple has experienced a decline in revenue every quarter in fiscal 2023 compared to the same period a year before. However, Wall Street analysts anticipate a turnaround in 2024, projecting a re-acceleration in the company's revenue growth. This renewed optimism is driven by the expected rebound in demand for smartphones, laptops, and computers.

As the tech rally continues and speculation surrounding the Federal Reserve's future monetary policy persists, Apple's record-breaking performance showcases the enduring confidence in the company's ability to adapt and thrive in a rapidly evolving market.