Apple loses status as the world’s most valuable company
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Status: 01:44 a.m
“The Fed had to react to inflation”
– – With the interest rate hike, the Fed is trying to achieve a “soft landing”, believes Sam Stovall, chief strategist at CFRA Research. At the moment, however, a recession does not have to be assumed. – –
– The fear of significantly rising interest rates is driving the prices of technology companies down. This has now led to the iPhone manufacturer having to give up its top spot in the list of the most valuable companies in the world – to a group that is benefiting from the current situation. – – – Dhe largest oil company in the world, Saudi Aramco, has replaced the technology group Apple as the most valuable company in the world. While Saudi Aramco’s share price has benefited from high oil prices in recent weeks, the iPhone manufacturer’s paper has come under increasing pressure due to rising capital market interest rates, supply bottlenecks and growth concerns. On Wednesday, Apple fell 5 percent to its lowest level since late October last year. Saudi Aramco’s share price has risen more than 17 percent on its home exchange Tadawul in Riyadh since mid-March. The Apple price, on the other hand, has lost more than 18 percent since the end of March. The prospect of rising interest rates caused investors to sell technology stocks in particular. Because in the long phase of cheap money, investors had increasingly relied on high-growth tech companies. Now, however, interest rates are likely to rise sharply in view of the high inflation, which could mean that Apple, Amazon, Microsoft & Co. are clearly overvalued.
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