Saudi Aramco has outstripped Apple Inc. as the highest valued company in the world. On Wednesday, Aramco reported a market capitalisation of about $2.43 trillion, surpassing Apple, which fell to $2.37 trillion.
There are a couple of reasons behind this trend. Crude oil prices are soaring across the world, with supply bottlenecks globally. Crude jumped again on Wednesday, with a barrel of benchmark US oil rising 4.9 per cent to $104.66. Brent crude, the international standard, added 5 per cent to $107.58.
At the same, technology stocks are taking a beating globally, largely on the inflation forecasts and the US Fed raising rates. Wall Street has been transfixed on the nation's high inflation, and where it is heading, because it is causing the Federal Reserve to yank the supports it propped under markets for most of the pandemic. Stocks have declined as the Fed turns away from a strategy of pumping money into the financial system, which boosted prices.
The Fed has flipped aggressively toward raising interest rates after seeing high inflation last longer than it expected. The Nasdaq composite was 0.4 per cent lower on Wednesday as tech stocks again lagged the market.