Over $500 billion was lost by six largest United States tech companies on Tuesday, as investors engaged in sell off on the companies following the release of US inflation rate, IgbereTV reports
The affected companies were Apple, which lost $154.11 billion in market capitalisation, after its share fell -5.87%, Microsoft saw a -5.5% dip in stock value wipe off $109.33 billion from its market valuation.
Amazon lost $98.11 billion in market capitalisation due to the sell off that dragged its share down by -7.06%, Alphabet shed $85.32 billion in equity valuation as a result of its stock price falling -5.9%.
Other tech stocks hit by the sell off were Meta, formerly known as Facebook, as its share fell -9.37%, causing a loss of $42.55 billion in value, with Nvidia losing $34.21 billion following a -9.47% dip in share.
Their losses came at a period the price of goods and services rose to 6.3% in August, surpassing the 6.1% recorded in July, with food index rising to 11.4%, highest in 43 years, as reported by US Bureau of Labor Statistics on Tuesday.
Ripples Nigeria had reported that the price of gas dropped. However, the hike in goods and services index, including food, indicated the purchasing power of consumers remain eroded by inflation, forcing them to continue reviewing their priority to drop unnecessary premium items to focus spending on crucial things like food.
When inflation affects consumer spending, technology firms are often impacted by the review of priority list, tanking earnings, and making their share unattractive to investors on the exchange floor
