Magnificent 7 loses $1 trillion as Apple, Nvidia stocks see worst days since 2020: Top points on US market crash

Published on 5 August 2024 at 18:44

Global stock market crash resulted in loss for major US technology companies which have seen a recent boom owing to Artificial Intelligence (AI).

The shares of US tech companies saw their sharpest decline since the beginning of the Covid-19 pandemic. Here are top points on the US stock market crash:

1. US indexes tanked as the blue chip Dow Jones Industrial Average's 2.8% decline set it up for its worst loss since September 2022. The S&P 500 saw more than 4% drop- making it its most painful day since September 2022. The tech-heavy Nasdaq Composite fell 6.2% on its starkest decline since March 2020.

2. Shares of "magnificent seven" tech companies were worst hit as investors braced for the possibility of a sharp economic slowdown.

3. Apple shares opened down 8%, Microsoft 5%, Nvidia 14%, Google parent Alphabet 6%, Amazon 8%, Facebook parent Meta 7% and Tesla 11%.

4. These seven companies account for about a third of the entire market capitalization-weighted S&P and together they lost a combined $1.2 trillion in market value minutes after trading began.

5. Apple and Nvidia stocks were the worst hit in terms of market value as Apple registered a roughly $270 billion loss and Nvidia a $380 billion loss.

6. All magnificent seven are now in a 10% correction or worse led by Amazon's 24% fall from its July 2 record closing high.

7. The US stock market is falling after Friday's jobs report which revealed a weaker labor market than expected and triggered sharp stock losses.

8. The US stock market was also impacted by concerns about the impact of Japan's increasing its borrowing costs on "carry trades" caused Japan's Nikkei stock index to register its worst day since 1987.

(HindustanTimes)


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