Tech stocks are rebounding, with Apple losing its position as the most valuable company.
Saudi Arabian oil and gas producer, Aramco has reclaimed the top spot from the iPhone maker in recent years.
Investors are moving out of technology stocks and into other, less risky investment options.
Crypto prices plunge, despite some short-term gains
Apple stocks fell on Wednesday to end the day at $2.37 trillion (£1.94 trillion).
A change in valuation means that ExxonMobil no longer retains the title of most valuable company in the world.
Shares of Aramco, the largest energy producer in the world, have increased as well.
Apple shares have fallen by 20% in the past few months due to a stock sell-off of technology stocks. Apple shares are still higher than they were at the start of 2018.
The Nasdaq closed 3.2% lower than its opening after numbers came in confirming that inflation is on the rise nationwide.
As the global economy emerges from the Covid-19 pandemic, the rise in prices has been the single biggest threat.
In order to respond to a financial crisis, central banks have raised interest rates. This led investors to start moving out of riskier investments.
SoftBank Group has lost $26.2bn at Vision Fund due to declining technology investments.
A year ago, the company was posting record yearly profit.
Since then, SoftBank has lost money after the fall of some of its investments, including Didi and Grab.
Bitcoin’s price has dropped in recent days because the demand for Ethereum, Dash and ZCash has increased.
Bitcoin, the cryptocurrency with the most demand in the market, has now lost about 60% of its value since hitting a record high in November last year.
Ether, the digital coin linked to Ethereum, also fell significantly again and has now lost more than 40% of its value in less than a week.
The Pandemic role
By January, Apple hit a market valuation of 3 trillion dollars. This was one of the big winners as spending decreased as a result of supply constraints during the coronavirus pandemic.
Apple’s market capitalization recently surpassed the GDP of the United Kingdom.
Apple’s stock market valuation has skyrocketed over the past 16 months as people rely more and more on it to stay connected.
Meanwhile, the state-owned oil giant Saudi Aramco has benefited from rising energy prices.
Saudi Arabia has the largest production in the OPEC oil cartel and Saudi Aramco made $110 billion in net profit in 2021, up from only $49 billion in 2020.
As global economies reopen, prices of energy have risen sharply because countries are trying to find alternatives to Russia as a supplier. The war in Ukraine this year has exacerbated this problem.
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