Apple, the world’s most valuable public company, and other major technology companies have lost more than $1 trillion in value since the close of trading on Wednesday when Fed Chairman Jerome Powell declared that inflation was too high and that no rate hike of more than half a percentage point was planned.
Powell’s remarks, which coincided with the Federal Reserve’s policy decision to raise its benchmark interest rate, sparked a massive sell-off in the global equity market, with technology companies suffering more than other sectors of the economy.
The following is a breakdown of the $1.06 trillion loss recorded by these leading companies over the last three trading days:
- Microsoft’s value has dropped by approximately $189 billion.
- Tesla’s markdown is $199 billion, months after its valuation dropped below $1 trillion.
- Amazon’s market cap has dropped by $173 billion.
- Google’s parent company, Alphabet, is worth $123 billion less than it was last week.
- Nvidia, the maker of graphics cards, has an $85 billion loss.
- Meta Platforms, the parent company of Facebook, has lost $70 billion in value.
Investors are less interested in what drove business during the recent strong bull market, including during the pandemic, and are now shifting more money to safer pockets of the market, such as staples and industrial juggernauts.