Ekhbary News Agency | June 23, 2024
Global stock markets suffered significant losses today, June 23, with the technology sector leading a broad sell-off. These declines, extending from Asian exchanges to Wall Street, were fueled by renewed investor fears concerning the excessively high valuations reached by tech companies. This development, for what it's worth, effectively ended a nearly three-month rally in riskier assets.
Tech Sector Faces Record Slump
Bloomberg reported a 7% drop in the chipmakers' index, despite having more than doubled from its war-induced lows. SpaceX also faced a steep decline, falling 16% yesterday and continuing its descent today below its IPO opening price. In the Far East, Seoul's Kospi index notably plunged by 9.99%, retreating from its recent highs. Such widespread downturns prompted investors to seek safe-haven assets, including US Treasuries and the Swiss franc, while Bitcoin's performance deteriorated significantly.
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Wall Street and European Markets Under Pressure
Wall Street opened with sharp drops, as the Nasdaq index fell 2.25%, heavily impacted by extensive selling in technology stocks. Although some recovery occurred later, the index remained down by 1.22%. The S&P 500 also ceded 0.75%, while the Dow Jones saw a slight gain of 0.15%. Across Europe, exchanges amplified their losses; London, Frankfurt, and Paris markets declined by 0.46%, 1%, and 0.64% respectively. These widespread retreats underscore growing apprehension regarding high valuations and AI investments, which might not yield anticipated returns, thereby exerting considerable pressure on global markets.
