IT giants lost $1 trillion in capitalization on Monday

American IT giants collectively lost about $1 trillion in market value in the first minutes of the opening of trading on stock exchanges on Monday, CNBC reports. Experts call yesterday one of the worst days on the stock exchange in almost 40 years.

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Nvidia lost more than $300 billion in market value when trading opened, although it quickly recovered about half of its losses. Shares of the chipmaker fell 7% in after-hours trading. The market value of Apple and Amazon at the opening of trading sharply dropped by $224 billion and $109 billion, respectively. The combined losses of Meta✴, Microsoft, Alphabet and Tesla and the seven most valuable technology companies amounted to about $995 billion in the first minutes of trading. As trading progressed, the company’s shares recovered slightly.

As a result, the high-tech Nasdaq index fell by 5.8% in the first minutes after the opening of the exchange, and the S&P 500 index, which unites the largest companies, fell by 3.9%. Cryptocurrencies also suffered. Since Sunday, Bitcoin managed to fall in price by 18% – from $60,000 to $49,000, but then rolled back to $54,000. The entire altcoin market is also in the red zone.

The world’s largest bank, JPMorgan, estimates the probability of a recession in the American economy at 50%. Before the start of trading in the United States, stock quotes had fallen significantly in Tokyo, Taiwan and Istanbul. For example, the Japanese Nikkei 225 index fell 12% on Monday. CNBC is calling today’s markets the worst day since Black Monday in 1987, which saw the biggest drop in the Dow Jones Industrial Average in its history.

One of the main reasons for this behavior of stock markets around the world was the changed forecasts for the unemployment rate in the United States. Growth is expected to be 4.3%, which will impact the United States economy. The sell-off in shares was spurred by fears of a recession in the United States, Warren Buffett’s fund’s decision to sell half of its stake in Apple and the collapse of the Japanese stock market.

Experts believe that excessive expectations from artificial intelligence technologies also pose a danger to markets. According to a recent analysis from Goldman Sachs, companies are spending too much money on artificial intelligence technologies that have little benefit at the moment. In a note to clients, Elliott Management, one of the world’s largest hedge funds, said Nvidia, the dominant player in the AI ​​hardware market, was in a “bubble” and the AI ​​hype was “overvalued.” Until recently, Nvidia’s market value exceeded $3 trillion, making it the most valuable company in the world. However, its market capitalization is now less than $2.5 trillion.