The inauguration of President Trump II in Washington's cold was a cause of celebration between the Silicon Valley elite.
The leading lights were in Alphabet, Amazon, Apple, Microsoft, Meta, Nvidia and Tesla – called “Seven Magnification Seven” – sitting prominently, sustained the president's promise to cancel the restrictions and fresh merger opportunities.
However, barely after 50 days, the total market evaluation of this seven heavy technology decreased by about $ 2.7 trillion. The catalyst was a disturbing mixture of stagnation fears, which are fueled by Trump's aggressive policies, a set of discounts in government jobs, and overwhelming economic data that revealed the weak growth of jobs in the United States weakest in February.
On Monday, the NASDAQ technology boat closed by 4 percent in the largest decrease in one day since March 2020 “Black Monday” in March, when the epidemic sent global markets to Freefles. Until recently, investors had spoken freely about the “Trump situation” – the assumption that the White House would intervene into highly declining market losses – but these hopes are fading now, leaving the sector on a shaky ground.
The repercussions were especially harsh for some billionaire founders. Elon Musk from Tesla, Jeff Bezos from Amazon, and co -founder of Google Sergey Breen, have witnessed that their collective wealth has been signed by more than $ 170 billion since the beginning of the year, according to Bloomberg's analysis. One of the prominent exceptions is Mark Zuckerberg, the head of Meta platforms, who got a little more than $ 4 billion in personal wealth during the same period.
The new trade conflicts have also been affected by the feelings, as the United States imposed a new tariff on Canadian imports – a step that many see as a sign that President Trump is multiplying on his combat approaches rather than retreating. The markets have found the administration that is directed away from the additional disturbances, but Jim Reed, head of macro research in Deutsche Bank, commented: “He made the market so tense that may not have” Trump “on the road in the first period, or at least not yet.”
The doubling of the turmoil is concerned that the wonderful seven became indifferent thanks to the widespread enthusiasm of artificial intelligence. For example, the price ratio to the profits in NVIDIA increased to 32 times early this year before it decreased to 23 after the sale. A wider decline in optimism about artificial intelligence – which was coordinated by Deepseek news in late January – is only added to pressure.
Tesla was exposed to the most difficult, as it got rid of the market value of $ 652 billion, as the demand in China and Europe coincides with a violent reaction against the nearby Musk links at the White House. For some trapped investors, hope now is that President Trump is backing from his most aggressive policies, allowing the “relief gathering” in American stocks. Until then, analysts expect the wonderful wealth of the seven – and their billionaire founders – volatile.
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