ILUSTRASI. Facebook. REUTERS/Dado Ruvic/Illustration
Reporter: Dina Mirayanti Hutauruk | Editor: Handoyo.
KONTAN.CO.ID – HONG KONG. Shares of technology companies in the United States (US) and China fell amid increasing concerns about the impact of the spread of the Omicron variant of the Covid-19 and signals from the Fed to speed up its withdrawal of stimulus.
Besides, the decline was also driven by the Giant’s plan ride-hailing China, Didi, to exit the New York Stock Exchange or be delisted. The plunge in tech stocks has hit Wall Street stock market highs to date.
Tesla Inc, Netflix Inc, Nvidia Corp, Amazon.com Inc and Facebook owner Meta Platform Inc have all slumped by more than 10% in recent weeks, dropping their market caps by several hundred billion. Meta alone has lost a market cap of $224 billion and its share hit a record last September as its shares plunged nearly 20%.
Also Read: Vingroup plans to list its business unit for an IPO in the US in 2022
The sell-off intensified last Friday, sending the NYSE FANG+, the index that covers shares of tech industry giants, down 10 percent from its peak. That’s a bad sign towards the end of the year, the stock’s most illiquid trading season.
Even Nvidia, which is included as the best performing issuer on the US stock market this year, was not without a hit with a 4.5% correction last weekend. Tesla fell 6.4% on Friday, Adobe Inc. fell 8.2% and Apple Inc. fell 1.2%. Salesforce.com Inc. fell nearly 12% on Wednesday.
The odd signal from the Fed has investors braced for a rate hike that will most affect some of the most valuable stocks. “This has driven a correction in the highest-valued stocks, growth expectations, and the need for equity market funding,” said Ben Laidler, global market strategist at eToro.
