In 2022, the US stock market (as you probably know) isn’t faring too well, and investors are becoming increasingly melancholy about it. But there’s no point in crying over spilt milk; let’s talk about what might happen next. Will the bear market be followed by a bull run and bring back all those lost gains? In this article, we look at the famous Dow Jones Index next to tech giant Apple, which has managed to keep its business in the black during these tumultuous times and try to suss out what might happen to both in the next few months.

The Dow Jones Index is one of the oldest and most commonly followed equity indices, tracking 30 of the most extensive blue-chip stocks in the market, and if you look at this year’s moves, it's clear that these big companies’ shares have settled well into the red recently.

The Dow Jones fared somewhat well compared to other US indices. The S&P 500 has seen a 16% drop over the year, and the Nasdaq is down almost 26%.

Many experts had called the US market (especially technology companies) overvalued even before the coronavirus pandemic and expected a modest downturn, at the least if not a sharp decline.

A dramatic drop occurred, but it had an objective reason – coronavirus restrictions. Severe supply disruptions led to inflation acceleration, and economies worldwide were severely deflated, you know, the drill. However, it is worth noting that many technology companies have kept growing. The pandemic only increased demand for their services… for a while.

By early 2022, the overall market seemed to be heading positively. We almost said goodbye to coronavirus, restrictions were being lifted, and the world emerged from the crisis. You can see it on our charts: the Dow Jones Industrial Average, the S&P 500, and the Nasdaq all advanced until February 2022, when the world’s geopolitical situation worsened.

The energy crisis, even harsher supply restraints than in the pandemic, inflation in double figures, and the Federal Reserve regularly raising interest rates – was all happening. At the same time, many experts still believe that the market is overvalued and that we should expect further declines. Great…

So what about Apple, and why are we talking about it? Apple is traditionally one of the most popular stocks among investors around the world. We also know that shares of technology companies are susceptible to changes in interest rates because their price is always based on future growth prospects.

But even with all that going on, Apple has still remained profitable this year – and that’s without considering dividends.

You could say that 3% isn’t necessarily anything to write home about, but given today’s inflation rate, that’s actually a pretty mean feat.

But maybe other tech companies aren't doing so badly either, and we’re giving excessive credit to Apple when it’s not due? Let's take a look at how the FAANG gang are doing. This acronym stands for Facebook (now Meta), Amazon, Apple, Netflix, and Google – take a look.

Why does Apple stand out so much? Well, there are a couple of reasons. First, the company has a coherent business model, which sounds simple but goes a long way. Of course, Apple is also affected by supply disruptions. Still, it’s always finding new opportunities and ways to work around the problem – for example, by launching a production site in India. Second, the company regularly releases new devices and services, which makes it more or less financially stable. Thirdly, new products continue to hit the nail with consumers' demand for them.

As a result, many experts in the market predict further declines in US markets but forecast growth for Apple’s shares and balance sheet in the next year. Analysts think the company's securities from Cupertino may grow by up to 20% over the next 12 months. That said, amid a decline in the general market, Apple’s stock is not necessarily a safe haven. Always remember to Look first / Then leap.