Tech companies Alphabet, Amazon, Microsoft, Meta, Tesla, Apple and Nvidia lost almost $900 billion in market capitalization in a few hours.
According to Reuters, shares of the “Beautiful Seven” companies fell by 6.5% after the opening of the stock market.
The decline in stock prices came as market concerns about slow economic growth in the United States led to the biggest drop in Japanese stock market history.
Another reason for the decline is said to be investors’ concerns that the payback period for large investments in AI will take longer than previously expected.
Earlier, Rakurs reported on the fall of the Japanese stock market – it experienced the largest collapse in its entire history. American stock markets also opened with a sharp decline on Monday, August 5.
The Nikkei 225 index plunged more than 12%, losing more than 4,400 points, as market concerns about slow economic growth in the United States drove the sharp decline.
Other major Asia-Pacific stock indexes also fell, with the Shanghai Composite losing 1.3%, the Hang Seng Index losing 2.3%, the KOSPI losing 8.8%, the S&P/ASX 200 losing 3.7% and the Taiex losing 8.4%.
This fall also affected the cryptocurrency market. The price of Bitcoin dropped sharply from $60,000 to $49,500.
The last one-day decline in the stock market was on Black Monday in 1987, when the Nikkei lost 3,836 points.
Source: Racurs
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.