Premarket stocks: What Apple’s surging stock says about the market

What’s happening: Bitcoin has erased its losses for the year, while shares of Apple (AAPL) — a bellwether for the tech industry — have climbed over the past 10 trading sessions. European stocks, which faced extreme selling as the region scrambled to secure energy supplies, are up 11% from their lows.

Stocks continued to rally in the United States as well. The Dow was up more than 300 points in late afternoon trading Tuesday and is now down just 3% for the year.

Federal Reserve officials are making clear that they intend to be as aggressive as needed to rein in the highest inflation in four decades. And investors are relieved that Russia and Ukraine are talking, even though it’s difficult to predict how negotiations will play out.

The price of bitcoin has rallied in recent weeks, rebounding almost 27% since the invasion of Ukraine in late February. The cryptocurrency is now up more than 3% year-to-date, a major reversal of fortune.

“Market sentiment has turned very bullish over the past week,” Marcus Sotiriou, an analyst at digital asset broker GlobalBlock, told clients on Tuesday.

Then there’s stocks. Investors turned on Big Tech companies — which skyrocketed during the pandemic recovery — as they geared up for the Federal Reserve to start withdrawing unprecedented support for the economy. The shock of the war in Ukraine only made matters worse.

The tech-heavy Nasdaq Composite entered a bear market earlier this month when it dropped more than 20% from its November peak. But it’s rebounded over the past two weeks. The index finished…