The Saudi oil giant takes the title from Apple, which has been at the top of the list since 2020. But recently, the tech giant has fallen sharply on Wall Street.
Apple shares, like the tech-heavy Nasdaq, have fallen sharply recently. The stock fell on Wednesday night by 3.48 percent, thus stabilizing the market value at about $2.410 billion.
On the other hand, shares in the Saudi oil giant Saudi Aramco rose, while global energy prices rose. And despite dropping just under one percent on the Tadawul on Wednesday, the stock is close to record levels.
The market capitalization is now just under $2,430 billion (or 9.1 trillion Saudi riyals) – so the company is the most valuable company in the world measured by market capitalization.
Apple previously held the title of the world’s most valuable listed company since 2020, according to Bloomberg.
Earlier this year, Apple boasted a market capitalization of about $3,000 billion — about $1,000 billion more than Aramco, according to the news agency. Since then, the stocks have gone their separate ways.
The tech downturn on Wall Street
Tech sales panic
At the same time, the US Federal Reserve plans to raise interest rates several times in the future, after implementing the largest rate increase in 22 years last week. That’s for smoldering stagnant inflation, which earlier on Wednesday proved lower than economists had expected.
Interest rate expectations have weighed on tech stocks on Wall Street, with the Nasdaq down more than 26 percent so far this year.
Moreover, the war in Ukraine continues to affect global supply chains — and sanctions against Russia are helping drive up energy prices.
There are panicked sales in a lot of tech and other high-priced stocks, and it looks like the money that’s coming from them is on its way to energy in particular, which currently has a favorable outlook, given commodity prices, chief strategist Tim Gresky of Ingalls & Snyder tells Bloomberg. .
– He adds that companies like Aramco benefit greatly from this environment.
Microsoft follows Aramco and Apple with a market capitalization of about $1.970 billion.
Strong downturn on the Nasdaq
That same night, the Nasdaq continued to tear down Wall Street. At book time, around 7.50pm Norwegian time, the index was down 2.5 percent.
In addition to Apple, Microsoft, Tesla and Facebook owner Meta are also in the doldrums.
The broad S&P 500 and Dow Jones Index were also down 1.14 and 0.69 percent, respectively.
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