Apple has lost its position as the world’s most valuable company amid a widespread sell-off in technology stocks. Oil and gas maker Saudi Aramco has reclaimed the top spot from iPhone maker for the first time in nearly two years.
When they move into investments, investors sell shares in technology companies that they perceive as less risky. Bitcoin, other major cryptocurrencies, and digital assets also fell sharply. Apple shares fell more than 5% in New York on Wednesday to end the trading day with a market value of $2.37 trillion.
It lost its position as the world’s most valuable company to oil and gas producer Aramco, valued at $2.42 trillion. This is the first time Aramco has taken the lead since 2020.
Shares of energy producers have risen as crude oil, and natural gas prices have risen.
This year, Apple shares are down nearly 20 percent after a sell-off in technology stocks. The Tech-Nasdaq closed 3.2 percent lower in New York on Wednesday after official data showed inflation in the United States remained at nearly 40 years.
The increase in prices is a significant threat to the global economic recovery after the Covid-19 pandemic. Central banks worldwide have reacted to the issue of rising interest rates, prompting a shift to riskier assets on fears that higher credit prices will slow economic growth.
The relocation of risky assets has also helped push the Bitcoin price below $29,000. After hitting a record high last November, the world’s largest and most famous cryptocurrency lost nearly 60% of its value. Ether, a digital coin connected to the Ethereum blockchain network, also fell sharply again, falling more than 10%.