Shares of US tech giants – including Amazon and Google – staged a shocking rally late Thursday after starting a day deep in the wake of Russia’s brutal invasion of Ukraine. shocks the global market.
The tech-heavy Nasdaq composite closed up 3.4% after starting the session down about 2.5%. The individual tech names have had an even crazier ride.
Shares of Apple fell 4% at the open before closing up 1.7%. Facebook’s parent meta fell 2.0% then closed up 4.6%.
Amazon and Google both started the day in the red but gained 4.5% and 4.0% respectively.
But the strange rally comes as the Nasdaq composite is still down 14.9% year-to-date. Technology industry watchers say tech is particularly vulnerable to the sharp sell-off in equities even though Russia and Ukraine are not important markets for the US tech giants.
That’s because they’ve been trading at such high prices that any slight disturbance could knock them off their already shaky pedestal, analysts said. They are also expected to be affected by rising interest rates.
In an investor note titled “Ukraine Invasion Will Cause a Scary Tech Sell-Off,” Wedbush Securities chief executive Dan Ives called the invasion a “Black Swan event.” causing “significant pain” for tech stocks.
“This is the most oversold we have seen since 2014/2015 with investors looking to exit in an accelerated fashion with potential war breaking out in Europe,” Ives said. Ives said.
Other tech stocks were also battered on Thursday.
Shares of electric carmaker Tesla fell as much as 4.9% in the morning, knocking billions of dollars off Elon Musk’s net worth before recovering to just 0.6%. Shares of Microsoft initially fell 1.5% before recovering to 1.6% in the green.
Some investors are turning to less risky assets like US Treasuries and gold, both of which spiked on Thursday. Investors are turning to less risky assets like US Treasuries and gold, both of which spiked on Thursday.
Meanwhile, cryptocurrencies including bitcoin and ethereum also fell and then recovered on Thursday. Bitcoin was trading down 4.5% on Thursday morning then recovered to trade up 3.1%, while ethereum fell 6% before gaining 2.3%, according to Coinbase data.
Smaller cryptocurrencies were beaten even more, with XRP down 12.6%, cardano down 9.7%, and solana down 9.0%.
https://nypost.com/2022/02/24/amazon-apple-and-tesla-shares-plunge-after-russia-invasion/ Amazon, Apple and Tesla Stocks Plunge After Russia Invasion