Tech sell-off pushes Nasdaq to steepest drop since June 2020

Cloud companies, e-retailers and home technicians were hit on Thursday, wiping out hundreds of billions of dollars in market value and driving the Nasdaq Composite to its worst day’s plunge since June 2020.

the next day Federal Reserve raised Investors have sold out some of the markets that are generally considered growth drivers, fearing that the economy is in a dark period, as they halved benchmark rates to stop rising inflation.

Big tech Suffering from a large sale, On amazon Facebook owners dropped almost 8% Meta platform About 7% off. Among other celebrities: Apple has fallen by nearly 6%. Google parents alphabet It decreased by about 5%.When Microsoft Stocks fell 4%. Overall, Nasdaq plunged 5%.

Investors have since fallen into e-commerce in particular ShopifyReported first-quarter disappointment, surged during the pandemic by helping physical retailers digitize Revenue and Revenue.. Stock prices have fallen 15%. Ebay When Etsy We also had a double-digit decline following our earnings report.

Technology rotation began in late 2021 as investors entered safer economies such as energy and financial services due to rising inflation and the threat of rising interest rates. Russia’s invasion of Ukraine in February has further hurt, rising energy prices and raising concerns about supply chain constraints and weakening business conditions in many parts of the world.

The first quarter of this year Worst period For Nasdaq since the same three months of 2020, when the early days of the pandemic spurred economic closure. The High Tech Heavy Index fell 9.1% in the first quarter. Nasdaq was down less than mid-second quarter and down 21% this year.

On Thursday, cloud stocks, which became popular with Covid for their use of services that companies could use remotely, were also hit hard.Invoice payment software developer Bill.com Project management software companies plummeted 13%, while Asana Inventory fell 11%.

The WisdomTree Cloud Computing Fund It has fallen by nearly 8%, the sharpest daily decline since September 2020.

For certain Covid winners like Netflix, zoom, Peloton When TwilioThe reversal of fate was even more dramatic than the run-up. Each has fallen by more than 45% so far, and the slump deepened on Thursday.

Markets initially responded positively to the Fed’s commentary on Wednesday after Chair Jerome Powell told the Federal Open Market Committee. Did not actively consider Rate hike by more than half. However, the prospect of continued rate hikes led to negative sentiment on Thursday, causing stocks to fall altogether.

look: Cash is probably the safest place at the moment, according to Barclays’ Deshpande.