Tech sector faces big sell-off amid recession fears, Berkshire Hathaway's move

(MENAFN) On Monday, the technology sector experienced a significant sell-off, led by Apple Inc. and Nvidia Inc., as investors grew increasingly concerned about a potential U.S. recession. The market turmoil was further exacerbated by Berkshire Hathaway Inc.'s decision to reduce its stake in Apple, which has halted a months-long rally in tech stocks. This decision by one of the largest shareholders in Apple intensified the negative sentiment in the sector, leading to a sharp decline in stock prices.

High-profile technology stocks including Alphabet Inc. (Google), AmazonInc., Meta Platforms Inc., Microsoft Corp., and Tesla Inc. saw dramatic drops of 12.2 percent in premarket trading. This widespread decline reflects growing anxiety over the economic outlook and has contributed to a significant retraction in the sector, which had previously been a strong performer in the market. The drop in these major tech stocks highlights the vulnerability of the sector amid economic uncertainties.

The cumulative losses among these seven leading technology companies are projected to erase nearly USD1 trillion from their combined market value. This substantial decrease underscores the scale of the impact that shifting investor sentiment and economic concerns are having on the technology sector, marking a notable shift from the previously robust performance that characterized the sector's recent growth. 

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