Apple, the popular technology stock owned by millions of Americans through funds in their 401(k)s, has become the first publicly traded U.S. company to hit a market value of $1 trillion.
The iPhone maker's milestone on Thursday follows an extraordinary stretch of innovation, and it arrives as the bull market for stocks, more than 9 years old, looks to overtake the 1990s bull run as the longest in history this month.
The company's good fortune is good news for individual investors.
Apple's stock is widely owned by workers ranging from teachers to electricians to lawyers. With a nearly 4 percent weighting, Apple is the biggest holding in the Standard & Poor’s 500 stock index, an investment that most people own in 401(k)s through index funds and other types of funds that hold Apple shares.
"Apple's $1 trillion valuation is a great reminder to investors that companies with innovative ideas combined with world-class products and service can create value for investors over time," says Kate Warne, investment strategist at Edward Jones, a brokerage headquartered in St. Louis.
Paul Hickey, co-founder of Bespoke Investment Group, a New York-based market research firm, says, “Apple’s gain boosts about every 401(k) since it is a big holding in just about every large-company mutual fund.”