Microsoft shares witnessed a decline of 3.9%, their worst decline in more than a month, and shares of the chip maker Navidia fell 5.2%, bringing its losses within 5 sessions to 20%, which is the worst performance of the stock since March 2020.
According to Arab Net, the Nasdaq 100 index fell by 2.4% on Monday, adding to the losses it incurred last week, which wiped out more than a trillion dollars in market value from the benchmark index of heavy technology companies in the past five sessions.
Kim Forrest, chief investment officer and founder of Bouquet Capital Partners, said: "There's a lot of pessimism...the war in Ukraine, high interest rates, recession fears, the pandemic shutdown in China, and oil prices...it's all very dark."
These macroeconomic risks are making some of the most cautious bulls more cautious.
These conditions prompted JPMorgan to change its recommendation to clients to take some profits, citing the risks of geopolitical conditions, and the tightening of Fed policy, just one month after it was advised to increase its stock holdings.
High-risk environment
Federal Reserve Board Governor Christopher Waller acknowledged the risks on Monday, saying that raising interest rates is a brute force tool that can cause collateral damage.
The Fed raised its key rate by a quarter of a point last month, and indicated that it expects to raise it to 1.9% by the end of 2022 as the central bank seeks to control inflation.
Officials said they are open to moving faster if necessary, including by a 50 basis point increase at the central bank's May 3-4 meeting.
To be clear, higher interest rates reduce the present value of future earnings, and particularly affect stocks of fast-growing companies that are not expected to earn earnings for years.
Last January, the market value of the Nasdaq 100 index shrank by about 3 trillion dollars, after the index reached the bottom, while the months of February and March were relatively better, as the value of the index fell by 1.7 trillion dollars and 1.5 trillion dollars. straight dollars.
The market value of the companies included in the index is $16.9 trillion, led by Apple, Microsoft and Amazon.
