More than $280 billion has been wiped from the \u201cmagnificent seven\u201d tech stocks following the release of several earnings reports on Oct. 25, triggering fears of a looming tech recession.<\/p>\n
The so-called \u201cmagnificent seven\u201d refers to the top seven blue-chip tech firms including Apple, Microsoft, Meta, Amazon, Alphabet, Nvidia, and Tesla \u2014 who combine to make up a quarter of the value of the S&P 500 index.<\/p>\n
Google parent company Alphabet saw its share price fall over 9%, wiping $180 billion from its market cap and was noted<\/a> as Google\u2019s worst-performing day since the COVID-19 pandemic hit in March 2020. <\/p>\n The share prices of Amazon, Nvidia, and Meta fell 5.5%, 4.3%, and 4.2% respectively, according<\/a> to Y Charts.<\/p>\n Apple and Tesla\u2019s fall in share prices were less severe at 1.35% and 1.9%, while Microsoft was the only one of the seven to buck the trend, with its share price rising 3.1% after reporting better-than-expected growth in its Azure business.<\/p>\n \u201cThis is the most widespread tech selloff in months which has resulted in a 5-month low for the S&P 500,\u201d Kobeissi said. <\/p>\n \u201cThis is what happens when the few stocks that are holding up the entire market break,” the firm said, adding that tech stock investors may be beginning to price-in a recession.<\/a><\/p>\n \u201cIt seems like buyers are becoming more hesitant as headwinds accumulate,\u201d Kobeissi noted<\/a> in a follow-up response.<\/p>\n Fears of a \u201cstock market crash\u201d have also been reflected in Google search trends, with the three-word term up 233% over the last week, noted Andrew Lokenauth, a reporter for TheFinanceNewsletter.com.<\/p>\n Google searches for Stock market crash up 233% in past week.<\/p>\n If the stock market crashed 10%, what stocks are you investing in? pic.twitter.com\/TQz8tVyL5U<\/a><\/p>\n \u2014 Andrew Lokenauth | TheFinanceNewsletter.com (@FluentInFinance) October 24, 2023<\/a><\/p><\/blockquote>\n On the other hand, the cryptocurrency market has been trending upwards amid optimism over possible spot Bitcoin ETF<\/a> approvals in the United States, with market cap increasing 16.3% to $1.3 trillion over the last week, according<\/a> to CoinGecko.<\/p>\n Bitcoin (BTC)<\/a> Ether (ETH),<\/a> Binance Coin (BNB)<\/a> and XRP<\/a> in particular have increased 23.3%, 16.7%, 8% and 15.2% respectively over the last seven days.<\/p>\n Related: <\/em><\/strong>Google to protect users in AI copyright accusations <\/em><\/strong><\/a><\/p>\n However, the crypto market hasn\u2019t proven to be bulletproof in face of tough macroeconomic conditions.<\/p>\n When the United States real gross domestic product decreased<\/a> over the first two quarters of 2022, the cryptocurrency market cap fell 61.7% from $2.37 trillion to $907 billion, according<\/a> to CoinGecko. <\/p>\n While analysts speculate whether Bitcoin will decouple further from tech stocks and the S&P 500,<\/a> past research from the Multidisciplinary Digital Publishing Institute suggests Bitcoin still tends to trade<\/a> like a \u201ctech stock\u201d over the long term \u2014 due to its extreme volatility.<\/p>\n It can, however, serve as a viable hedge against the U.S. dollar, which it\u2019s negatively correlated to, the research firm deduced from an Oct. 2022 report.<\/p>\n Since Sept. 1, Bitcoin has decoupled from the NASDAQ 100, increasing 34% while the NASDAQ has fallen 8.6% over the same time frame.<\/p>\n Meanwhile, the recent investor movements have some observers hinting that the movement could be seen as a \u201cflight to safety\u201d toward Bitcoin \u2014 particularly in light of several banking stocks plummeting<\/a> lately.<\/p>\n It\u2019s almost like I predicted that #crypto<\/a> would decouple from stocks. And here we are with tech #stocks<\/a> sinking and #bitcoin<\/a> rallying. https:\/\/t.co\/K1R3OIiOgV<\/a><\/p>\n \u2014 Bryan Ross (@bryanrosswins) October 25, 2023<\/a><\/p><\/blockquote>\n\n
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