The largest tech companies in the world saw over a $1 trillion decrease in value over three trading sessions, only a few days after the US Federal Reserve announced an increase in interest rates to help combat inflation.
The latest policy of the Federal Reserve helped numerous stocks sell off. However, the technology sector has faced more adverse consequences since then.
Investors are now more interested in pushing their money towards safer pockets of the market such as General Mills, Campbell Soup, etc. rather than investing in businesses that are unable to sustain well during the pandemic.
The world’s most valuable company, Apple lost $220 billion since trading closed on Wednesday, the same day the Federal Reserve declared inflation was running high and raised its benchmark interest rate by 0.5%.
The S&P 500 U.S. stock index fell below the 4,000 mark on Monday and continued to decline by 7% since Wednesday’s close. The Invesco Nasdaq 100 ETF also dropped by nearly 10% during the same period.
Microsoft also reportedly lost around $189 billion in value. While Google’s parent company Alphabet saw its market capitalization value decline by $123 billion. Graphics card manufacturer Nvidia lost $85 billion. Instagram and Facebook’s parent Meta Platforms also lost $70 billion in value.