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



9:50 AM UTC – December 1, 2023

(Reuters) – Market capitalizations 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’s (AAPL.O) market value jumped 11.2% to $2.95 trillion over the past month, while Microsoft Corp (MSFT.O) saw a 12.1% increase in its market cap, reaching $2.8 trillion.

Nvidia Corp’s (NVDA.O) 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 (JPM.N) saw its market cap increase by 12.2% to $451 billion by the end of November.

In other sectors, Tesla Inc’s (TSLA.O) 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 (2222.SE) and Exxon Mobil Corp (XOM.N) saw market caps fall by 0.3% and 2.9%, respectively.

Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Kim Coghill