After multiple earnings reports were released on October 25, the “Big Seven” technology stocks lost more than $280 billion, raising concerns about an imminent technology recession.
The so-called “Big Seven” refers to the seven blue-chip technology companies including Apple, Microsoft, Meta, Amazon, Alphabet, Nvidia and Tesla, which together account for a quarter of the value of the S&P 500 Index.
The share price of Google parent company Alphabet fell more than 9%, and its market value evaporated by US$180 billion. famous It was Google’s worst day since the COVID-19 pandemic began in March 2020.
Amazon, Nvidia, and Meta stock prices fell 5.5%, 4.3%, and 4.2% respectively. according to to the Y chart.
Shares of Apple and Tesla fell slightly, down 1.35% and 1.9% respectively, while Microsoft was the only one among the seven companies to buck the trend, rising 3.1% after announcing better-than-expected Azure business growth.
“This is the broadest sell-off in technology stocks in months, sending the S&P 500 to a five-month low,” Corbisi said.
“This is what happens when a small number of stocks supporting the entire market collapse,” the firm said, adding that tech stock investors could start pricing in a recession.
“As headwinds accumulate, buyers appear to be becoming more hesitant,” Kobesi said. famous in a follow-up response.
TheFinanceNewsletter.com reporter Andrew Lokenauth pointed out that concerns about “stock market crash” are also reflected in Google search trends, with searches for this three-word phrase rising by 233% last week.
Google searches for the stock market crash increased by 233% in the past week.
If the stock market plummeted 10%, what stocks would you invest in? pic.twitter.com/TQz8tVyL5U
— Andrew Lokenos | TheFinanceNewsletter.com (@FluentInFinance) October 24, 2023
On the other hand, the cryptocurrency market has been on an upward trend, with market capitalization growing 16.3% to $1.3 trillion last week amid optimism over the potential approval of a spot Bitcoin ETF in the United States. according to Go to CoinGecko.
In particular, Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB) and XRP have gained 23.3%, 16.7%, 8% and 15.2% respectively in the past 7 days.
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However, the cryptocurrency market has not proven invulnerable in the face of tough macroeconomic conditions.
When U.S. real gross domestic product reduce In the first two quarters of 2022, the cryptocurrency market value fell by 61.7%, from US$2.37 trillion to US$907 billion. according to Go to CoinGecko.
While analysts speculate whether Bitcoin will further decouple from tech stocks and the S&P 500, past research from the Multidisciplinary Digital Publishing Institute suggests that Bitcoin will still tend to behave like a “tech” stock in the long run due to its extreme volatility. Trade like “stocks”.
However, the research firm inferred from an October 2022 report that it could serve as a viable hedge against the U.S. dollar, which is negatively correlated with the U.S. dollar.
Bitcoin has decoupled from the Nasdaq 100 index, rising 34% since September 1, while the Nasdaq fell 8.6% during the same period.
Meanwhile, some observers have suggested that recent investor moves could be viewed as a “flight to safety” for Bitcoin — especially given how several bank stocks linear decrease recent.
Almost as I expected #cryptocurrency Will be decoupled from stocks.We are here with technology #stock sinking and #bitcoin assembly. https://t.co/K1R3OIiOgV
— Bryan Ross (@bryanrosswins) October 25, 2023
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