NASDAQ 100 fell towards the bear market, as its losses increased from the highest level in February 20 %, as investors got rid of simply high -tech shares in the Bronard market.
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(Bloomberg)-Nasdaq 100 decreased towards the bear market, as its losses increased from the highest level in February 20 %, as investors got rid of high technology shares in the uterine program market.
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He spent the sale for six weeks for nearly 6 trillion dollars of technology since its climax, which is stimulated by President Donald Trump's tariff for the anxiety will push the American economy to recession. The destruction of the market value was greater in Apple Inc. And Nvidia Corp. , Companies whose valued 3 trillion dollars are optimistic about artificial intelligence. At this rate, there will be no $ 3 trillion.
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During the slide, Chipmakers Broadcom Inc. And Micron Technology Inc. At least 33 %, while famous artificial intelligence like Marvel Technology Inc. decreased. The Constellation Energy is at least 45 %. The wonderful Bloomberg 7 index launched by 24 %, while LululeMon Athletica Inc. And Airbnb Inc. At least 30 %.
Despite all the sale, though, NASDAQ 100 continues to make an annual gain of 20 % over the past five years to Thursday, which provides warnings that the bubble was amplified. Even with a decline of 20 %, the components of the index remain expensive for date, as the price ratio to the profits is still higher than the average over the past two decades. For oligarchy, this is a worrying sign if the recession is in the near future.
“The decline is dismay, but we only restore a percentage of the amazing gathering in the long run and we have not seen a real surrender, so it is not the field that we bring it more,” said Steve Sosnik, chief strategic expert in the interactive group of brokers in Greenwich. “A point will come in which big technology will become good value again, but I don't know that we are there yet.”
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The last losses came after the Trump administration announced the policies of the customs tariffs seen as “the worst scenario of technology”, especially given the high exposure that companies such as Apple for countries such as China as an industrial center. NASDAQ 100 5.4 % drowned on Thursday, the largest decrease for one day since September 2022. More sale came after China took revenge on these definitions on Friday.
The sale is the largest decrease in the NASDAC 100 since 2022, the year that has witnessed a decrease in measurement by 33 % amid slow economic growth and profit reduction. In late 2022, the ChatGPT version pulled the index from the recession amid euphoria about the possibility of new technology. NASDAQ will continue to double a little more than two years led by NVIDIA and other large technology shares as investors are betting that heavy spending on artificial intelligence will make great profits.
During that time, Big Tech has taken defensive stock properties, due to the solid public budget and fixed cash flows. The last clouds were stolen from this situation, as investors sell the winning in the short term and are seeking a shelter in treasury bonds or the most defensive sectors in the traditional stock market-which leaves technology investors wondering when the segment will provide the opportunity to buy.
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“They have a wonderful cash flow and great companies, but the news flow is very difficult,” said Sosnik. “Just as it was important to fight this step higher in the wonderful seven, if you are looking to buy now, you are likely to stand in the way of the international tide that is now moving in the other direction.”
In addition to the calculus calculation and the difficult integrity is the cost of artificial intelligence. Big Tech has poured billions of dollars in building infrastructure and investment in research, but profits have not yet followed. As the group's profits are expected to grow, investors are interrogated when the fruits of hundreds of billions of dollars will be spent on AI.
The index took 32 sessions to decrease 20 %. If it is closed without this level, this will represent the third fastest decrease in the bear market since 2000. The rate of price to the NASDAC 100 to 30 times has decreased from 38 times in February, compared to the average over the past two decades from 25, according to the data collected by Bloomberg.
“It is time to be cautious,” said Mark Grant, chief international strategic expert at Collers Securities. “Technological assessments have increased to a very high degree, and while they come down, I think they will continue to be exposed.”
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