Big tech companies have lost hundreds of billions of dollars in market value amid concerns about supply chains and falling global demand.
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The escalation of military tensions in West Asia after the US and Israel launched military strikes on Iran has cost global capital markets an estimated $7 trillion, with oil and gas prices rising by between 70 and 85 percent, according to Reuters.
The main blow to the decline in the stock market has been borne by the US stock market. Apple's share price has fallen by about 11 percent, while Microsoft has fallen by about 9 percent. The market value of Nvidia, the world's most valuable company, has fallen by about 14 percent in a month. Amazon's share price has fallen by about 10 percent and Meta's share price by about 11 percent.
In the financial sector, JP Morgan is down about 7 percent, Goldman Sachs is down about 9 percent. Industrial giant Boeing is down about 13 percent, and Tesla is down about 15 percent.
The decline began on fears of potential regional conflicts and energy supply disruptions. This has been pushing major indicators down continuously. Shares in the technology and financial sectors have fallen the most due to rising inflation and long-standing uncertainty in the supply system.
‘The market is now experiencing geopolitical risks that have not been seen in years,’ Reuters quoted senior economist Jamie Dimon as saying, ‘The psychology of the market is driven by uncertainty rather than fundamental economic indicators. ’
The market has been selling shares as the conflict has not been resolved. According to Reuters, the outflow from the equity market has intensified as fund managers move towards safer investments.
The decline is not limited to Wall Street but has also spread to other major markets around the world. While China’s main indices have fallen by about 6 to 8 percent, Britain’s FTSE has fallen by about 5 percent. Similarly, France’s CAC and Germany’s DAX have also fallen by an average of 7 to 9 percent this month. Japan's Nikkei fell nearly 8 percent while neighboring India's Sensex and Nifty indices fell about 4.6 percent.
