Technology as the turning point of civilisations
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This discussion focuses on why the US tech sector has been a key driver of the S&P 500 and how its influence extends beyond pure technology companies. Major traditional businesses—such as Woolworths—rely on tech giants like Microsoft and Amazon for core systems, cloud storage, and infrastructure. This integration delivers significant productivity gains, enabling trends like remote work, which would have been impossible on older internet infrastructure.
The US currently enjoys a substantial productivity advantage over other economies due to a strong culture of R&D, commercialisation, and cross-sector application of technology. This dynamic is absent in regions like Europe and Australia, where conversations about productivity remain focused on legacy industries rather than developing high-value, innovation-driven sectors.
The discussion concludes by noting that sustained earnings growth—and thus share price growth—requires continual innovation, with the US and, to a lesser extent, India positioned as attractive destinations for capital under these conditions.
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Source: Finance News Network