Saudi Aramco overtook Apple Inc. as the world’s most valuable company

Saudi Aramco overtook Apple Inc. as the world’s most valuable company, stoked by a surge in oil prices that is buoying the crude producer while adding to an inflation surge throttling demand for technology stocks.

Aramco traded near its highest level on record on Wednesday, with a market capitalisation of about $2.43 trillion, surpassing that of Apple for the first time since 2020. The iPhone maker fell 5.2 per cent to close at $146.50 per share, giving it a valuation of $2.37 trillion.

Even if the move proves short-lived and Apple retakes the top spot again, the role reversal underscores the power of major forces coursing through the global economy. Soaring oil prices, while great for profits at Aramco, are exacerbating rising inflation that is forcing the Federal Reserve to raise interest rates at the fastest pace in decades. The higher rates go, the more investors discount the value of future revenue flows from tech companies and push down their stock prices.