Technology companies’ stocks face sell-off amid recession fears

(MENAFN) On Monday, technology stocks faced a substantial selloff, led by prominent companies such as Apple Inc. and Nvidia Inc. This decline was driven by growing fears of a potential recession, along with Berkshire Hathaway Inc.'s decision to cut its stake in Apple Inc., the renowned maker of the iPhone. The move by Berkshire Hathaway interrupted a months-long rally that had significantly bolstered the technology sector, causing a notable drop in stock prices and investor confidence.

According to a UK news agency, the shares of several high-performing tech giants, including Google's parent company Alphabet, Amazon, Meta Platforms, Microsoft, and Tesla, experienced a stark decline of 12.2 percent in pre-market trading. This dramatic drop indicates broader concerns about the stability and future prospects of the technology sector amid increasing economic uncertainties. Investors are becoming increasingly wary of the potential for an economic downturn, which has led to a reevaluation of the high valuations that tech stocks had previously enjoyed.

The impact of these losses is expected to be profound, with the combined market value of these seven major technology companies anticipated to suffer significantly. The sharp decline in stock prices is projected to wipe out nearly USD1 trillion from their collective market capitalization. This staggering decrease underscores the inherent volatility and sensitivity of the technology market to broader economic indicators and shifts in investor sentiment. The substantial drop highlights the challenges and risks that the technology sector faces, even as it has been a major driver of market gains in recent years. The selloff serves as a stark reminder of the fragility of investor confidence and the swift impact that changes in economic outlook and major investment decisions can have on the market.

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