Top 5 Tech Companies Lost $270 billion During Thursday’s Market Confusion

UTC by Steve Muchoki · 3 min read
Top 5 Tech Companies Lost $270 billion During Thursday’s Market Confusion
Photo: Depositphotos

With market uncertainty rising yesterday, the top 5 tech companies saw their shares falling. Amid a worrisome surge in new coronavirus cases and a high unemployment rate, the stock market experienced an increase in volatility.

Top 5 tech companies’ shares Apple Inc (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), Facebook Inc (NASDAQ: FB), Microsoft Corporation (NASDAQ: MSFT), and from Inc (NASDAQ: AMZN) lost 4.8%, 4.29%, 5.20%, 5.37% and 3.38% respectively. As a result, the companies lost over $270 billion in one day.

However, it’s worth mentioning that today teh situation has changed and the stocks have started the trading session with gains.

The high volatility is being attributed to several factors that have been playing out, but majorly it is because of the concerns around a second wave of the coronavirus in the United States. Essentially, analysts were anticipating such a play since several states have been reopening and easing their measures on coronavirus amid a spike in cases reported.

It was a huge blow to the companies that were rallying after recovering the March free fall that saw the global market almost in a standstill. The situation might continue worsening as protests on police brutality amid coronavirus lockdown rise, escalating chances of more infections, hence causing more fear.

With the downtrend not assured of ending over the weekend when most protesters tend to be active, a significant number of shareholders rushed to liquidate their shares to save their capital. The sell-off affected even the perceived safe-haven like Bitcoin and also precious metals including gold and silver. However, in the pre-market today, most cryptocurrencies led by Bitcoin, ETH and XRP have recovered a significant chunk. Precious metals also have shown their tenacity to withstand the sale of pressure as investors rush in them.

Notable, stablecoins like Tether saw a spike in volume and also market capitalization, indicating investors diverted their capital to avoid counting more loss.

Unpredictable Times Ahead for Top 5 Tech Companies 

The market volatility ahead might continue with a similar situation putting in mind a possible COVID-19 vaccine is months away and even if approved soon, it might not be enough for the global population within a short period.

With some states still proceeding with the plan on reopening despite the spike in new numbers, the top 5 tech companies face a challenging time ahead on stabilizing their balance sheet. States planning to proceed with the reopening schedule include Georgia, Idaho, and Florida.

According to data tracked by the Washington Post, eleven states reached their highest 7-day rolling averages of new coronavirus cases yesterday. The situation on the ground might tighten as the presidential campaigns begin setting the pace, with people registering for the rally being asked to sign a disclaimer of non-liability if they contract coronavirus.

The top five tech shares might recover individually depending on the companies underlying fundamentals and ability to deliver during the pandemic.

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Steve Muchoki
Author Steve Muchoki

Let’s talk crypto, Metaverse, NFTs, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!

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