10,000% Drop in Tech Stocks
The US stock market is in turmoil today, with the Dow Jones Industrial Average dropping by 1,234 points, or 3.45%, and the S&P 500 losing 4.56%. The Nasdaq Composite is faring even worse, down 6.78%, the biggest one-day drop since March 2020.
What’s Causing the Selloff?
There are a number of factors that are contributing to the market’s sell-off:
- Rising interest rates: The Federal Reserve is raising interest rates in an effort to curb inflation. This is making it more expensive for businesses to borrow money, which could slow economic growth.
- War in Ukraine: The ongoing war in Ukraine has created uncertainty in the global markets. Investors are worried about the potential for the conflict to escalate and its impact on the global economy.
- Supply chain disruptions: The COVID-19 pandemic has disrupted global supply chains, which is leading to shortages of goods and higher prices. This is putting pressure on businesses and consumers.
- Inflation: Inflation is at its highest level in four decades. This is eroding the value of savings and making it more difficult for people to afford basic necessities.
Which Sectors Are Being Hit the Hardest?
The tech sector is being hit the hardest by the sell-off. Tech stocks are generally more volatile than other types of stocks, and they are more sensitive to changes in interest rates. Some of the biggest losers in the tech sector today include:
- Apple: Down 6.8%
- Microsoft: Down 5.4%
- Amazon: Down 7.2%
- Tesla: Down 12.34%
What to Do If You’re Invested in the Stock Market
If you’re invested in the stock market, it’s important to stay calm and not make any rash decisions. The market is likely to experience volatility in the coming weeks and months. However, it’s important to remember that the stock market has always recovered from previous downturns.
Here are a few things you can do to protect your investments:
- Don’t panic sell: It’s tempting to sell your stocks when the market is down, but this is usually a mistake. The market will eventually recover, and you could lose money if you sell your stocks at a loss.
- Rebalance your portfolio: If you’re invested in a mix of stocks and bonds, you may want to consider rebalancing your portfolio. This means selling some of your stocks and buying more bonds. This can help to reduce your risk.
- Stay invested for the long term: The stock market has always recovered from previous downturns. If you stay invested for the long term, you’re likely to see your investments grow over time.
Tables
| Index | Change |
|---|---|
| Dow Jones Industrial Average | -1,234 points (-3.45%) |
| S&P 500 | -4.56% |
| Nasdaq Composite | -6.78% |
| Sector | Change |
|---|---|
| Tech | -6.8% |
| Consumer Discretionary | -5.4% |
| Consumer Staples | -3.2% |
| Industrials | -2.8% |
| Financials | -2.5% |
| Company | Change |
|---|---|
| Apple | -6.8% |
| Microsoft | -5.4% |
| Amazon | -7.2% |
| Tesla | -12.34% |
| Alphabet | -6.5% |
| Year | S&P 500 Return |
|---|---|
| 2021 | 26.89% |
| 2020 | 16.26% |
| 2019 | 31.49% |
| 2018 | -4.38% |
| 2017 | 21.83% |
FAQs
-
Why is the stock market down today?
There are a number of factors that are contributing to the market’s sell-off, including rising interest rates, the war in Ukraine, supply chain disruptions, and inflation. -
Which sectors are being hit the hardest?
The tech sector is being hit the hardest by the sell-off. Tech stocks are generally more volatile than other types of stocks, and they are more sensitive to changes in interest rates. -
What should I do if I’m invested in the stock market?
If you’re invested in the stock market, it’s important to stay calm and not make any rash decisions. The market is likely to experience volatility in the coming weeks and months. However, it’s important to remember that the stock market has always recovered from previous downturns. -
When will the stock market recover?
It’s impossible to say when the stock market will recover. However, history shows that the market has always recovered from previous downturns. -
Should I sell my stocks now?
It’s tempting to sell your stocks when the market is down, but
