Tech stocks are crushed as the market sells off
A trader works at the New York Stock Exchange NYSE in New York, on August 26, 2022.
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America’s six biggest tech companies lost more than $500 billion in value on Tuesday after a August inflation report unexpectedly high caused tech stocks to plunge. The consumer price index rose 0.1% for the month and was up 8.3% year-on-year, even as gas prices fell.
The Invesco QQQ ETF, an exchange-traded fund that tracks the 100 highest-rated non-financial companies listed on Nasdaq, suffered a 5.5% drop in its worst trading day since March. 2020. The fund’s top 10 holdings include Apple, Microsoft, Amazon, Alphabet, Meta, and Nvidia.
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The Nasdaq Composite fell 5.16% and ended the day at 11,633.5, steeper than any day since June 2020. The Dow Jones Industrial Average fell 1,276.37 points, or 3.94%, to close. closed at 31,104.97 and the S&P 500 fell 4.32% to 3,932.69.
Here are the companies that announced some of the biggest losses:
- Apple lost $154.11 billion in market capitalization and fell 5.87%, the steepest drop since September 2020
- Microsoft lost $109.33 billion and fell 5.5%, the biggest drop since September 2020
- Alphabet (the company that owns Google) lost $85.32 billion and fell 5.9%, the biggest drop since March 2020
- Amazon lost $98.11 billion and fell 7.06%, the biggest drop since May 2022
- Meta (formerly Facebook) lost $42.55 billion and fell 9.37%, the steepest drop since February 2022
- Nvidia lost $34.21 billion and fell 9.47%, the steepest drop since March 2020
The August inflation report is one of the last reports the Fed will see ahead of its September 20-21 meeting where the central bank is expected to deliver third consecutive interest rate hike 0.75 percentage points to reduce inflation. The report could keep the Fed strong for longer than some investors anticipate.