Technology shares experienced the biggest decrease in two weeks after their pandemia

Although technology shares moved upwards at the beginning of the third quarter, permanent inflation and interest rate hikes reversed this situation.

Technology shares, which started by recovering in the third quarter of the year, seem to have reversed this situation in the last two weeks. The Nasdaq index decreased by 5.1 percent this week after 5.5 percent loss in the previous week.

This has pointed out the worst two weeks of technology-weighted index since the beginning of the Covid-19 pandem in the United States. With the completion of the third quarter next week, Nasdaq is preparing to increase its losses in the third quarter in a row.

Investors have been abandoning technology shares since the end of 2021, believing that rising inflation and increasing interest rates will have a huge impact on rally companies. Nasdaq is currently located in the region close to the lowest level of two years in June.

The new summit was reached in interest rates

The US Federal Bank made a third 75 percent-point interest rate hike in a row and increased its federal fund to 3-3.25 percent. Interests thus reached the highest level since the beginning of 2008.

In the meantime, the rising rates increase the 10 -year Treasury return to the highest level of 11 years, while the dollar index continues to strengthen. This makes US products more expensive in other countries, damaging technology companies that focus on export.

“This is a fist in technology. Strong dollar does not help technology. High 10 -year Treasury returns do not help technology. ” made the evaluation.

Amazon among the large -capital group of companies experienced the worst week with a decrease of close to 8 percent. Google’s roof company Alphabet and Facebook’s commodity declined by about 4 percent.

These Companies take into account the weakened consumer demand, decreing advertising exportary prints. At this point, cost cuts or recruitment may be slowing Down.

The Financial State Also Makes Statements About the Risk of Recession in the Us Economy. Finally, Goldman Sachs and Bank of America Made Pessimistic Statements for Markets. Goldman, S & 500’s Year -End Target, Who the Weakness of Investor Sensitivity from BAFA WAS EMPHASized.

Source: https://www.cnbc.com/2022/09/23/tech-stocks-worst-two-week-stretch-since-the-start-of-pandemic.html