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Tech market values jump in September on Fed rate cuts, AI optimism

Published 2024-10-02, 06:31 a/m
© Reuters. FILE PHOTO: A trader works on the trading floor on the last day of trading before Christmas at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., December 23, 2021. REUTERS/Andrew Kelly/File Photo
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(Reuters) - The market capitalization of many tech firms surged in September, buoyed by a Federal Reserve rate cut that typically enhances future profits and cash flows for high-growth companies, and further fuelled by continued enthusiasm for artificial intelligence.

Tesla (NASDAQ:TSLA)'s market value surged 22.2% last month to $834.4 billion by end-September, driven by record electric vehicle sales in China in August and its plans to introduce its Full Self-Driving (FSD) advanced driver assistance software in China and Europe.

Oracle Corp (NYSE:ORCL)'s market value climbed 21.3% to $472.2 billion at the end of last month, with the stock reaching record highs fueled by optimism over the company's projection to surpass $100 billion in revenue by fiscal 2029, driven by AI-led demand for cloud services.

Meta (NASDAQ:META) Platforms Inc's market value surged about 10% to $1.45 trillion as their shares also reached all-time highs, driven by the unveiling of its first working prototype of augmented reality glasses, called Orion, and the introduction of new AI capabilities for its services.

© Reuters. FILE PHOTO: A trader works on the trading floor on the last day of trading before Christmas at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., December 23, 2021. REUTERS/Andrew Kelly/File Photo

Amazon.com Inc (NASDAQ:AMZN)'s market value increased by 4.4% to $1.95 trillion at the end of last month, and Microsoft Corp (NASDAQ:MSFT)'s market value rose 3.2% to $3.2 trillion.

On the other hand, Eli Lilly (NYSE:LLY) and Co's market value dropped 7.7% to $842 billion, while Saudi Arabian Oil Co's market value fell 3% to $1.75 trillion at the end of last month.

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