Daily Management Review

US Big Tech lose over $1T in market cap after Fed's decision


More than $1 trillion in market capitalization was lost by U.S. tech giants in trading after the Federal Reserve raised interest rates.

Alex Proimos
Alex Proimos
U.S. tech giants have lost over $1 trillion in market value over the past three trading days - May 5, 6 and 9. The sell-off began after the Federal Reserve decided to raise interest rates by half a percentage point on Wednesday, May 4, reports CNBC. 

Apple, the world's most expensive publicly traded company, has lost $220 billion since the close of trading on Wednesday, May 4. At the time, Fed Chairman Jerome Powell said inflation was too high, but plans to raise rates would be limited to half a percentage point.  In the stock market-wide sell-off that followed the decision, U.S. Big Tech companies were hit the hardest.

Microsoft lost about $189 billion in market value. Tesla lost about $199 billion. Amazon's market capitalization dropped by $173 billion. Alphabet, Google's parent company, is worth $123 billion less than a week earlier. Video card maker Nvidia lost about $85 billion and Meta lost $70 billion.

Investors switched their attention to safer investments, such as Campbell Soup (producer of canned soup), General Mills (one of the world's largest food producers) and J.M. Smucker (production and sale of food products in the U.S. and Canada).

source: cnbc.com