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Tech giants lead surge in global mega-caps as inflation eases

Published 2023-12-01, 04:50 a/m
© Reuters. FILE PHOTO: The Apple Inc. logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo
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(Reuters) - Market capitalisations of global mega-cap companies, led by prominent technology firms, surged in November, buoyed by a decline in U.S. yields and growing anticipation of potential rate cuts by global central banks amid diminishing worries about inflation.

Apple Inc (NASDAQ:AAPL)'s market value jumped 11.2% to $2.95 trillion over the past month, while Microsoft Corp (NASDAQ:MSFT.O) saw a 12.1% increase in its market cap, reaching $2.8 trillion.

Nvidia Corp's market cap soared 14.7% to $1.15 trillion, following its announcement of a 206% year-over-year revenue increase to $18.1 billion in the third quarter. The firm also projected higher-than-expected revenue for the fiscal fourth quarter, citing improved supply chain conditions and robust demand for its AI chips.

Easing inflation concerns also gave a big boost to banking stocks. JPMorgan Chase & Co (NYSE:JPM) saw its market cap increase by 12.2% to $451 billion by the end of November.

© Reuters. FILE PHOTO: The Apple Inc. logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo

In other sectors, Tesla Inc (NASDAQ:TSLA)'s market value rose nearly 20% to $763.2 billion last month, following a price hike for its Model 3 and Y vehicles in China. Despite the cessation of subsidies, China recorded a surge in electric vehicle sales in October, according to market research firm Rho Motion.

Conversely, a decline in oil prices led to a drop in the market capitalisations of major oil firms. Saudi Arabian Oil Co and Exxon Mobil Corp (NYSE:XOM) saw market caps fall by 0.3% and 2.9%, respectively.

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