Tech market values jump in September on Fed rate cuts, AI optimism
2024.10.02 07:54
(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:)’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:)’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 Platforms Inc (NASDAQ:)’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.
Amazon.com Inc (NASDAQ:)’s market value increased by 4.4% to $1.95 trillion at the end of last month, and Microsoft Corp (NASDAQ:)’s market value rose 3.2% to $3.2 trillion.
On the other hand, Eli Lilly (NYSE:) 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.
