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Tech stocks rode a high in September on Fed rate cuts + AI optimism: Tech equities in the US saw surging market caps last month, supported by the US Federal Reserve’s decision in late September to kick off its monetary easing cycle with a 50 bps interest rate cut and continued optimism around developments in AI, Reuters reports.
Breaking with history: September is typically the worst month for US equity markets, a trend that has been largely maintained since 1950. Historically speaking, the S&P 500 “has generated an average monthly decline of 1.2% and finished higher only 44.3% of the time dating back to 1928,” Market Watch says, citing Dow Jones Market Data.
How top players fared: Oracle’s market cap rose 21.3% m-o-m at USD 472.2 bn as the company capitalized on growing demand for its AI-powered cloud services, with Meta also up 10% at USD 1.45 tn on the back of product unveilings. Automaker Tesla — which is sometimes considered as a tech player — also posted a 22.2% jump in its market cap to USD 834.4 bn, buoyed by record EV sales in China, and plans to roll out its full self-driving software to markets in Europe and China.
IN CONTEXT- The top five largest companies globally by market capitalization are tech or tech-related firms. Apple is at the top of the league with a market cap of USD 3.54 tn, followed by Microsoft (USD 3.2 tn), Nvidia (USD 3.0 tn), Alphabet (USD 2.05 tn), and Amazon (USD 2.0 tn). Saudi Aramco — whose USD 1.75 tn market cap places it in the sixth spot — and Walmart are the only two non-tech companies among the top 10 globally.
MARKETS THIS MORNING-
Asian markets are mixed in early trading this morning, with Japan’s Nikkei firmly in the green while the Hang Seng Index is down c.3%. Meanwhile, Wall Street futures are a sea of red, with Dow Jones, S&P, and Nasdaq futures all down.
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ADX |
9,307 |
-1.1% (YTD: -2.8%) |
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DFM |
4,440 |
-0.8% (YTD: +9.4%) |
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Nasdaq Dubai UAE20 |
3791 |
-1.6% (YTD: -1.3%) |
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USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
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EIBOR |
4.7% o/n |
4.0% 1 yr |
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TASI |
12,044 |
-1.7% (YTD: +0.6%) |
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EGX30 |
31,333 |
-1.7% (YTD: +25.9%) |
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S&P 500 |
5,710 |
0.0% (YTD: +19.7%) |
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FTSE 100 |
8,291 |
+0.2% (YTD: +7.2%) |
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Euro Stoxx 50 |
4,963 |
+0.2% (YTD: +9.8%) |
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Brent crude |
USD 74.63 |
+1.5% |
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Natural gas (Nymex) |
USD 2.89 |
-0.4% |
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Gold |
USD 2,681 |
+0.4% |
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BTC |
USD 60,874 |
-0.4% (YTD: +43.8%) |
THE CLOSING BELL-
The ADX fell 1.1% yesterday on turnover of AED 3.79 bn. The index is down 2.8% YTD.
In the green: Al Khaleej Investment (+8.2%), Chimera (+5.5%) and E7 Group Warrants (+3.2%).
In the red: Aram Group (-9.7%), Abu Dhabi National Building Materials Co. (-7.6%) and Multiply Group (-4.1%).
Over on the DFM, the index fell 0.8% on turnover of AED 449.8 mn. Meanwhile, Nasdaq Dubai closed down 1.3%.
