(News Bulletin 247) – American indices fell sharply at the opening on Monday, still shaken by the latest employment report which supports the theory of a recession in the United States.
Like other stock markets around the world, Wall Street fell at the opening on Monday, worried about the risk of recession in the United States.
At the opening, the Dow Jones fell by 2.8%, the S&P 500 by 2.7% while the Nasdaq 100 plunged by 4.7% which constitutes its biggest fall at the opening in more than four years, Bloomberg reports. Technology groups, growth stocks par excellence, are the most exposed to the risks of an economic slowdown.
Warren Buffet cuts back on Apple
And it is the stars of the rating who are weighing down the trend since the “Magnificent Seven” of Wall Street which include the Gafam (Google, Amazon, Facebook, Apple, Microsoft) to which we add Nvidia and Tesla, represent approximately 43% of the weighting of the Nasdaq 100, recalls Bloomberg.
Nvidia is down 14%. According to the American media The Information, the graphics processor specialist will delay the launch of its new chips intended for artificial intelligence by at least three months after the discovery of a manufacturing defect.
Apple plunges more than 7%, undermined by Berkshire Hathaway’s latest move. Warren Buffett’s conglomerate said it reduced its exposure to the Apple brand by selling half of its shares in the second quarter.
Nvidia is currently wiping out nearly $360 billion in market capitalization, while Apple is losing $280 billion, Bloomberg also reports.
Other technology stocks are not immune to this capitulation movement, Google is down 5.7%, Amazon is down 6.5%, Meta is down 6.7%, Microsoft is down 4.5% and Tesla is collapsing 10.2%
“The summer lull is over. Stock markets are in turmoil and bond yields have plunged as fears of a US recession have taken over,” notes Neil Shearing, chief economist at Capital Economics.
It is in this tense context that investors will take note of the ISM services index in the United States for the month of July. A figure below 50 could fuel fears of recession.
In Paris, the CAC 40 fell by 2.6% to 7,064.34 points, the FTSE 100 plunged by 2.7% at the opening of the American markets.
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