Rising interest rates and instability in the Middle East led the S&P 500 to fall 9.8% from its peak in 2023.
he only glimmer of hope among these seven tech giants, which was Microsoft, also faded on Thursday.
The seven technology giants that had boosted the US stock market this year are being hit by disappointing results, which has reduced their market capitalization by about $386 billion and threatens to take the S&P 500 towards a correction.
Companies like Alphabet Inc., owner of Google, Tesla Inc, Meta Platforms Inc (Facebook’s parent company), and Microsoft Corp have experienced sharp declines since the publication of their quarterly reports. For example, Microsoft suffered especially on Thursday.
Thus, of the seven technology giants, Amazon.com Inc. faltered in its operations after publishing its results, while the remaining two, Apple Inc. and Nvidia Corp, must present their reports next month.
These seven companies were the center of attention in the stock market throughout the year, thanks to the enthusiasm around artificial intelligence that boosted its profits. However, this optimism has been dampened by rising interest rates and instability in the Middle East, leading the S&P 500 to fall 9.8% from its peak in 2023, putting it on the verge of a correction in a market bullish.
Nasdaq 100: all is not lost
However, the euphoria is still present. The Nasdaq 100 index, dominated by these seven companies, is still up 29% so far this year, which leaves room for the market to fall further. Meta’s results negatively affected the market on Thursday, down 3.7% after disappointing investors over advertising’s long-term recoveryciting an uncertain economic environment.
This came after Alphabet lost nearly $180 billion in market value on Wednesday due to a lower-than-expected profit at its cloud unit, marking the biggest single-session loss in value for the search giant.. Tesla also suffered a loss of $72 billion in a single day following the release of its results earlier this month.
The only glimmer of hope among these seven tech giants, which was Microsoft, also faded on Thursday. The Windows software company collapsed, reversing an earlier surge that had added about $75 billion in market value on Wednesdaythanks to first quarter results that exceeded expectations.
Both Alphabet and Microsoft, that compete with Amazon in the field of cloud infrastructure, have been aggressively developing artificial intelligence offerings to make their platforms more attractive to customers. The disparity in their results sets a high standard
Source: Ambito
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