The S&P 500 Is Just Flat in May — Apple Stock Hasn’t Helped.

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A person wears a mask while they pass the logo board of the new Apple store in Wuhan, China.

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The S&P 500 didn’t gain all that much in May, with the index poised to finish out the month mostly flat. There’s a host of factors to blame for the lackluster performance — one of them is the performance of Apple’s stock.

Apple (ticker: AAPL ) comprises nearly 7% of the S&P 500, making it the index’s largest holding and giving the stock an outsized effect on the S&P 500’s final performance.

Apple shares have been battered over the last month and a half amid fears of a recessionary environment and growing concerns that its Covid-related supply-chain issues aren’t going away anytime soon. The stock has declined about 5% this month, seemingly unable to recoup its losses even as the market staged a rally late last week.

“The S&P 500 made strides towards a heroic recovery last week, jumping 7% to complete the best week so far this year and ending the longest weekly losing streak since 2001,” wrote S&P Global senior associate Sherifa Issifu in an emailed statement.

Thanks to the late rally, the S&P has risen a little less than 1% in May, but remains down 13% for the year. Apple’s stock, in turn, is down about 16% in 2022, and looked poised to open in the red on Tuesday, down 0.2% in premarket trading.

Analysts are still divided on how long Apple’s downturn will last. Last week, J.P. Morgan analysts said they had a more “conservative view” on the number of iPhones the tech giant will manufacture this year, due to macroeconomic uncertainties and lockdowns in China.

But Wedbush’s Daniel Ives said he was seeing a “clear improvement in the supply chain in Asia,” which is a much needed positive heading into the second half of the year.

Write to Sabrina Escobar at sabrina.escobar@barrons.com