$1T wipeout: Market rout punishes mega-cap tech
On August 5, 2024, the seven largest U.S. tech companies lost about $1 trillion in market value, with Nvidia losing over $300 billion, amid broader economic concerns and investor caution.
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At the start of trading on August 5, 2024, the seven largest U.S. tech companies collectively lost approximately $1 trillion in market value, marking a significant downturn for the sector. The Nasdaq index fell over 3%, continuing a trend that saw it enter correction territory the previous week. Nvidia experienced the most substantial loss, shedding over $300 billion in market cap, while Apple and Amazon saw declines of $224 billion and $109 billion, respectively. This market rout was exacerbated by broader economic concerns, including disappointing data that contributed to a 12% drop in Japan's Nikkei 225, the worst since the 1987 crash. The tech sector has faced increasing investor anxiety, particularly following underwhelming earnings reports from major companies like Amazon, Alphabet, and Microsoft. Analysts have raised alarms about potential overinvestment in artificial intelligence, with some suggesting that Nvidia's recent surge in value may be unsustainable. Despite a previous boom in AI-related stocks, the current sentiment reflects a shift towards caution among investors.
- The seven largest U.S. tech companies lost about $1 trillion in market value.
- The Nasdaq index fell over 3%, entering correction territory.
- Nvidia was the hardest hit, losing over $300 billion in market cap.
- Broader economic concerns contributed to significant market declines globally.
- Analysts warn of potential overinvestment in AI, questioning the sustainability of recent tech valuations.
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5 comments> US Markets Melt Down(this has since left front page or been renamed)
> GLOBAL STOCK MARKETS ARE PLUNGING
> Fear on Wall Street has reached highest level in 2 years, but some analysts think that investors are overreacting
> Stocks are tumbling. But, no, America’s market is not ‘crashing’
> 3 reasons to worry about July’s weak jobs report — and 1 reason not to panic
It's been a bizarre past couple years. Out amazing attention economy has been feeding the "recession is coming" and "or is it" narratives for so long now.
For clicks they are selling both the fear of recession and the hope that it's all "panic"... On the same page now!
I really do wonder how much 24 hour news and social media is impacting markets. Do we just have to wait for everyone to stop clicking "the sky is falling"?
One one hand the economics feels very uncertain and feels like things could fall apart a bit (employment - some folks have been looking for months for a job, continued mass layoffs, some political uncertainties).
I am curious how Japan was able to keep rates so low for so long - was there some thumb on scale stuff keeping them down (ie, forced buying of govt debt?)
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