The USA Leaders
July 18 2024
New York – A massive shockwave shook the tech industry on Wednesday as shares of leading chipmakers, including Nvidia, AMD, and TSMC, plummeted, dragging down the Nasdaq Composite by over 2.7% in its worst single-day performance since December 2022. The technology stocks crash was primarily triggered by mounting concerns over potential US export restrictions on advanced chip technology to China.
Nvidia, the world’s most valuable chipmaker, saw its shares tumble more than 6%, erasing billions in market value. Just after reaching the mark of most valued company in terms of market cap. The technology stocks crash hit hard as the company, heavily reliant on the Chinese market, faced the prospect of tighter export controls, which could significantly impact its revenue.
Similarly, TSMC, the world’s largest contract chipmaker, experienced a dramatic 8% decline, wiping out nearly $30 billion in market capitalization. This technology stocks crash is seen as a significant event that might reshape market dynamics in the tech industry.
ASML, the Dutch semiconductor equipment giant, wasn’t spared either. Despite reporting solid quarterly earnings, its shares plunged over 12%. The company’s exposure to the global chip supply chain makes it vulnerable to geopolitical tensions.
The broader market also felt the impact. The S&P 500 declined by more than 1.3%, while the Dow Jones Industrial Average managed to eke out slight gains, primarily driven by the healthcare sector. Just a week back, the above mentioned indexs reached their record high.
What Drove Technology Stocks Crash?
The potential for stricter US export controls on chip technology to China has sent shockwaves through the global tech industry. This technology stocks crash could disrupt the supply chain, increase costs, and potentially lead to a global chip shortage.
Additionally, heightened geopolitical tensions involving Taiwan, a key player in semiconductor manufacturing, have added to investor uncertainty.
The full impact of this technology stocks crash remains to be seen. If the US imposes stricter export controls on China, it could trigger a broader supply chain disruption and lead to higher prices for electronic goods.
Investors will be closely monitoring developments in the coming weeks for clues about the market’s next move, as the effects of the technology stocks crash continue to unfold.
