Amid the plunge in the New York stock market on the 9th (local time), the market capitalization of seven big tech companies, including Apple and Amazon, has evaporated more than $1 trillion over the past three trading days.
According to CNBC, Apple’s market capitalization, the world’s No. 1 company, has shrunk by $220 billion over the past three trading days.
In addition, Microsoft lost $189 billion in market capitalization and $19 billion in Tesla during the same period. Amazon’s market capitalization fell by 173 billion dollars, Alphabet by 123 billion dollars, Nvidia and Meta by 85 billion dollars and 70 billion dollars, respectively.
CNBC analyzed that technology stocks are falling all at once after Jerome Powell, chairman of the U.S. Federal Reserve, mentioned that “inflation is too high.”
The Standard & Poor’s 500 index has fallen 7% since the 4th and closed below 4000 for the first time since March 31, 2021.
Amazon, Apple, and Netflix all fell more than 5%, 3%, and 4%, respectively, while Tesla and Nvidia fell more than 9%.
The market continues to decline due to concerns over a potential economic slowdown caused by interest rate hikes and soaring inflation.
“Market fluctuations are expected to continue as the risk of stagflation continues to expand,” said Manesh Despande of Barclays.
Tesla’s stock price plunged 9.07% to $787.11 on the New York Stock Exchange.
China’s Corona blockade has intensified the global supply chain, food and raw material prices have soared due to the Ukrainian war, and global inflation has soared, and central banks, including the U.S. Fed, are aggressively raising interest rates to curb inflation.
In this situation, a large number of selling technology stocks, which are risky assets, are emerging. As a result, Tesla, a leading U.S. technology company, seems to be on the decline.
Not only Tesla but also Lucid, an electric vehicle budding company, plunged 9.92 percent to $16.35 from the previous trading day.
Nicola, an electric truck startup, also closed at $5.85, down 13.33% from the previous trading day.
Shares of Rivian plunged nearly 21% in the regular market after Ford said it plans to sell 8 million shares of Rivian, dubbed Tesla’s rival.
