The pandemic saw tech stocks rise to unimaginable highs and now tech stocks are seeing unprecedented lows. Silicon Valley has been the indicator of the rise of the market and now there seems to be a correction as investors are fleeing to traditional companies including stocks related to food and agriculture. Start ups are laying off employees and big tech companies are on a hiring freeze.
Several giant tech stocks saw a loss of hundreds of billions or millions of dollars in total market value. According to trade on Monday, tech companies lost the following in share price on the year:
Peloton, Netflix, Palantir and Rivian have also see their share rates plunge.
Only Walmart has outperformed the markets and investors are bullish and buying the stock which is considered to be a safe haven for many stock traders.
Asian markets were also down, mainly due to China’s zero Covid policy which is bringing back supply chain issues that were somewhat easing. European markets also closed in the red.
The tech heavy Nasdaq Composite dropped by more than 4 percent, after the losses that took place. on Monday, on Wall Street. On Monday, the Dow fell by over 600 points while the S&P 500 saw its lowest level in a year, when it fell below 4,000. Nike, Caterpillar and bank stocks also fell. Shopify and Lyft have also crashed. The selloff is expected to continue as traders invest in traditional stocks.
Only consumer staples did not see a dip in share price. There was a silver lining as Walmart, 3M, Home Depot and Amgen share prices rose despite the heavy selloff of stocks. Other stocks that are seeing consumer interest include Campbell Soup, General Mills and J.M. Smucker.
The fed’s rate hikes are a method to correct soaring inflation but have also resulted in slowing future growth. The war in Ukraine has slowed the economy of all countries in the world which were slowly limping back from the economic losses due to the pandemic. China’s zero Covid policy has also affected supply chain issues.