Economy

Tech Market Values Surge in September Amid Fed Rate Cuts and AI Optimism, According to Reuters

The market valuations of several technology companies experienced significant increases in September, propelled by a recent rate cut from the Federal Reserve. This reduction in rates typically enhances future profits and cash flows for high-growth firms and is further amplified by ongoing excitement surrounding artificial intelligence.

Tesla saw its market value rise by 22.2% last month, reaching $834.4 billion by the end of September. This surge was driven by record electric vehicle sales in China during August and the company’s plans to roll out its Full Self-Driving (FSD) software in China and Europe.

Oracle Corp’s market capitalization climbed 21.3% to $472.2 billion at the end of September, with the stock reaching all-time highs amid optimism regarding the company’s forecast to exceed $100 billion in revenue by fiscal 2029, largely fueled by AI-driven demand for cloud services.

Meta Platforms Inc also enjoyed a notable increase, with its market value rising approximately 10% to $1.45 trillion. This growth was attributed to the launch of their first working prototype of augmented reality glasses, named Orion, and the introduction of new AI functionalities.

Meanwhile, Amazon’s market value rose by 4.4% to $1.95 trillion, while Microsoft saw its market capitalization increase by 3.2% to $3.2 trillion.

Conversely, Eli Lilly and Co experienced a decline in market value, dropping 7.7% to $842 billion, and Saudi Arabian Oil Co saw a decrease of 3% to a valuation of $1.75 trillion by the end of the month.

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