Tech giants in freefall: NVIDIA, Google, Apple plunge 11%

The Nikkei 225 index, Japan's primary stock market benchmark, plummeted by 12.4%, marking its most significant single-day loss since the infamous "Black Monday" crash in 1987. This dramatic downturn underscores growing concerns about the global economy's stability and has triggered alarm bells among investors worldwide.

Tech giants hit hard

• NVIDIA, Alphabet (Google), and Apple have each seen their stock values decrease by 11%.
• Meta (Facebook), Tesla and Amazon are down by 10%.
• Microsoft shares have dropped by 9%, reflecting a widespread sell-off in the tech sector.

Global markets react:

• The Taiwan Stock Exchange fell 15%, prompting immediate concerns about regional economic stability.
• South Korea's market opened with an 8% loss, leading to a temporary halt in trading as panic spread.

Cryptocurrency impact:

• Bitcoin and other cryptocurrencies faced significant setbacks, with Bitcoin losing nearly 10% of its value.
• The crypto market, known for its volatility, has not been immune to the broader financial turmoil.

State of play: The sudden and severe market downturn has led to speculation about potential responses from major financial authorities. Rumors of an emergency meeting by the U.S. Federal Reserve are circulating, hinting at possible interventions to stabilize the situation.

Context

The last time the Nikkei 225 experienced a loss of this magnitude was during the 1987 crash, which had far-reaching effects on global financial markets.

The declines across major tech stocks and global indices reflect ongoing fears about inflation, interest rate hikes, and potential economic slowdowns. As central banks worldwide grapple with these challenges, market volatility is expected to persist.

August 05, 2024 12:00 PM GMT+03:00