The world’s largest technology companies have shed over $1 trillion in value in just three trading sessions.
Stocks at large have sold off since the Federal Reserve raised its benchmark interest rate on Wednesday, but technology has endured more pain than other sectors of the economy.
Investors now have less interest in what drove business during a strong bull market in recent years, including during the pandemic, and are now pushing more money toward safer pockets of the market, including staples like Campbell Soup, General Mills and J.M. Smucker.
Apple, the world’s most valuable public company, has shed $220 billion in value since the close of trading on Wednesday, the day Fed Chair Jerome Powell declared that inflation was running too high and that there were no plans for a rate hike more than half of a percentage point.
Markets first moved up on Powell’s comments, but the optimism sputtered out in the following days. Stocks went lower on Thursday, fell again on Friday and then still lower on Monday. The S&P 500 U.S. stock index fell below the 4,000 mark on Monday, having declined by 7% since Wednesday’s close, while the Invesco Nasdaq 100 ETF is off by nearly 10% during the same period.
Here are the other big losses over the last three trading days:
- Microsoft has lost around $189 billion in value.
- Tesla’s markdown registers at $199 billion, months after seeing its valuation fall below $1 trillion.
- Amazon’s market capitalization has declined by $173 billion.
- Alphabet, Google’s umbrella company, is worth $123 billion less than it was last week.
- Graphics card maker Nvidia’s loss stands at $85 billion.
- And Facebook parent Meta Platforms has lost $70 billion in value.
Source: CNBC