Apple (NASDAQ: AAPL) Moves Higher on Trade Talks, Pays $95 Million in Privacy Lawsuit

Markets have reacted strongly to news of positive trade talks over the weekend, with Apple's stock price (NASDAQ: AAPL) up 6.18% in the early part of the pre-market session, over $210.

With the majority of iPhones manufactured in China, high tariffs are seen as a significant disruptor to Apple's supply chain, so it is no surprise to see AAPL moving higher on the news.

Also hitting news-wires on the day, is the confirmation that Apple has agreed to settle a lawsuit for $95 million over allegations surrounding its voice assistant, Siri. The legal action accused Apple of recording individuals' private conversations without their consent, even when the “Hey Siri” command wasn't activated.

The lawsuit's claims indicated that some Siri recordings might have reached third-party contractors. These recordings, it was alleged, were used beyond just enhancing Siri's voice recognition capabilities, raising concerns about user privacy.

Apple has denied allegations of using Siri recordings for advertising purposes or selling user data. The tech giant maintains that these recordings were solely intended to improve Siri's performance. Notably, Apple claims to have stopped sending Siri recordings to external contractors back in 2019.

With Apple coming into today's session 18.59% down on a YTD basis, a shift in tone from the world's two largest economies was likely to provide some relief to holders. Already more than 15% off the lows set last month, the stock had been fighting back against bearish sentiment, with analysts largely revising to the downside.

Further clarification on what can be expected in any deal could help propel sentiment higher, although the $220 level on the chart looks to be shaping up as firm resistance.