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Tech sell-off puts Nasdaq on worst intraday rally since June 2020


Amazon CEO Andy Jassy speaks during the GeekWire Summit in Seattle on October 5, 2021.

David Ryder | Bloomberg | beautiful pictures

Cloud computing companies, electronics retailers and home tech names were hit on Thursday, wiping out hundreds of billions of dollars in market value and sending the Nasdaq Composite to a crippling decline. in a single day as of June 2020.

A day later Federal Reserve Rises With its benchmark interest rate cut by half a point to try to combat inflation, investors sold out of the market often seen as an engine of growth, out of concern that the economy was in for some dark times.

Big technology big sell-off. Amazon and Facebook owner Meta owners each reduced by 7%. Google’s Mother Alphabet, Microsoft and Apple are all reduced by about 5%. Nasdaq plummeted 5.1% as of early afternoon New York time.

Investors pay special attention to e-commerce after ShopifyStand out during pandemic by helping physical retailers transition to digital, disappointing first quarter report income and revenue. Shares fell 15%. Ebay and Etsy also suffered a double-digit drop after their earnings report.

The technological shift that begins in late 2021 as soaring inflation and the threat of a rate hike has led investors to shift to sectors of the economy seen as safer, such as energy and services. finance. This was followed by Russia’s invasion of Ukraine in February, which further raised oil prices and raised concerns about supply chain constraints and weakening business conditions in many parts of the world.

The first quarter of this year is worst times for Nasdaq since the same period in 2020, when the early days of the pandemic led to a recession. The heavy tech index fell 9.1% in the first three months of the year. Less than the second half of the second quarter, Nasdaq fell another 13%.

Cloud stocks, which have also become a favorite during Covid as corporations tap into services they can use remotely, were also hit hard on Thursday. Bill payment software developer Bill.com saw the stock drop 12%, while the project management software company By Asana stocks fell about the same amount.

The WisdomTree cloud fund fell 7.9%, which would make Thursday the steepest drop since September 2020.

Crushed Covid winner

CNBC

For certain Covid winners like Netflix, Launch, Peloton and Twilio, the reversal of fortune is even more dramatic than the rise. Each stock is down more than 60% over the past year, and their decline continued along with the rest of the market on Thursday.

Markets initially reacted positively to the Fed’s comments on Wednesday, after Chairman Jerome Powell said the central bank’s Federal Open Market Committee did not actively consider any interest rate increase more than half a point. The prospect of continued rate hikes, however, led to negative sentiment on Thursday, sending stocks broadly lower.

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