Only a few days after the US Federal Reserve announced a rise in interest rates to help battle inflation, the world’s leading internet businesses saw their value plummet by over $1 trillion over three trading sessions.
The Federal Reserve’s recent policy aided the selling of several equities. Since then, however, the IT industry has suffered further negative impacts.
Rather of investing in firms that are unable to survive the pandemic, investors are now more interested in safer parts of the market such as General Mills, Campbell Soup, and others.
Apple, the most valuable business in the world, has lost $220 billion since trading ended on Wednesday, the same day the Federal Reserve determined inflation was out of control and hiked its benchmark interest rate by 0.5 percent.
The S&P 500 US stock index dipped below 4,000 on Monday and has dropped further 7% from Wednesday’s close. During the same time span, the Invesco Nasdaq 100 ETF fell by roughly 10%.
Microsoft is also said to have lost $189 billion in value. While Alphabet, Google’s parent firm, had its market valuation drop by $123 billion. Nvidia, a graphics card manufacturer, suffered a $85 billion loss. Instagram and Facebook’s parent company Meta Platforms both saw their stock prices plummet by $70 billion.