Saudi Aramco becomes world’s most valuable stock as Apple drops

Saudi Aramco becomes world’s most valuable stock as Apple drops

Saudi Aramco overtook Apple as the world’s most valuable company, stoked by a surge in oil prices that is buoying the crude producer while adding to an inflation surge that is throttling demand for technology stocks. Aramco is near its highest level on record and with a market capitalisation of about $2.43tn, surpassed that of Apple for the first time since 2020. The iPhone maker fell 3.9 per cent in New York to $148.50, giving it a valuation of $2.41tn at 1.05pm in New York Even if the move proves short-lived and Apple retakes the top spot again, the role reversal underscores the power of major forces coursing through the global economy. Soaring oil prices, while great for profits at Aramco, are exacerbating rising inflation that is forcing the Federal Reserve to rise interest rates at the fastest pace in decades. The higher rates go, the more investors discount the value of future revenue flows from tech companies and push down their stock prices. Earlier this year, Apple boasted a market value of $3tn, about $1tn more than Aramco’s. Since then, however, Apple has fallen by 16 per cent while Aramco is up 27 per cent. With the Fed on