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Writer's pictureDhawal Sharma

Why US Tech stocks are falling?

Certainly! Here’s a more detailed summary of recent events related to the decline in US tech stocks:


Credit : Zee Business
  1. US Stock Market Plunge (July 2024):

  • US stock markets experienced their worst losses since 2022 as investors sold off shares in struggling tech companies.

  • The Nasdaq index fell by 3.6%, the S&P 500 dropped 2.3%, and the Dow Jones Industrial Average slid 1.2%1.

  • Signs of nervousness around tech stocks had been building up in recent weeks, highlighting Wall Street’s vulnerability to any weakness in the Big Tech trade.

  • Tumbling shares from the “Magnificent Seven” (stocks belonging to Big Tech) led the tech-heavy Nasdaq index downward.

  • Tesla and Google parent Alphabet Inc. reported mixed financial results, impacting investor sentiment1.

  1. Asia Markets and India:

  • Asia’s Nikkei index closed down 3.28%, its lowest level since April, likely influenced by the troubles in US markets.

  • However, India’s markets rallied, positioning the country as a rapidly growing emerging market1.

  1. European Firms and China’s Economic Slowdown:

  • European companies across sectors faced challenges due to China’s economic slowdown.

  • As Chinese consumers reduced non-essential purchases, sales declined, impacting profit margins in Europe.

  • These issues also affected US tech stocks, as the economic downturn and local competitors in electric vehicles and technology industries diminished tech companies’ market shares in China.


           

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