Traders work on the New York Stock Exchange trading floor during morning trading on July 31, 2024.
Michael M. Santiago | Michael M. SantiagoGetty Images
As U.S. markets opened on Monday, technology giants lost about $1 trillion in market value, deepening a slump that put the Nasdaq into correction territory last week.
Nvidia More than $300 billion was wiped off market value at the open, but it quickly recouped about half of its losses. The chipmaker’s shares closed down 6.4%, with a loss of $168 billion. apple and Amazon’s Valuations plummeted by $224 billion and $109 billion respectively at opening. Apple ultimately fell 4.8%, with a market value of $162 billion. Amazon closed down 4.1%, or $72 billion.
Add all of this to a steep drop in Yuan, Microsoft, letter and Tesla, the seven most valuable technology companies lost $995 billion in the early stages of trading. They bounced back a bit as the deal progressed.
Japanese stocks fell broadly on Monday as fears of a recession sparked by last week’s disappointing economic data. Nikkei 225 Index It fell 12% on Monday, its worst day since Wall Street’s “Black Monday” crash in 1987. Bitcoin plunged 11%, leading to a sell-off in cryptocurrencies and related stocks.
In the technology sector, investors have been nervous for weeks. The Nasdaq ended last week down 3.4% The worst three-week stretch Two years later, it fell another 3.4% on Monday. Amazon, Alphabet and Microsoft all gave reasons for concern on Wall Street in their reports, leading to declines among their peers.
That’s a big change from just a few months ago, when investors cheered Meta’s CEO Mark Zuckerberg and Google C.E.O. Sundar Pichai Both said their companies are investing heavily in building artificial intelligence infrastructure.
Nvidia, a company unknown to most Americans, is the biggest beneficiary because its graphics processing units (GPUs) power the artificial intelligence boom. The company has a market capitalization of over US$3 trillion and briefly surpassed Microsoft and Apple to become the world’s most valuable company. Its current market capitalization is less than $2.5 trillion.
Some analysts have recently been warning of possible overinvestment in artificial intelligence.
a widely read Goldman Sachs A June report warned that the top spenders have little to show for their spending on artificial intelligence. Elliott Management, one of the world’s largest hedge funds, reportedly told clients that Nvidia is in a “bubble” and that the craze for artificial intelligence is “overhyped.”
Nvidia will report earnings later this month. The company’s revenue has grown more than 200% in the past three quarters.
