On Thursday, cloud companies, eretailers, and household tech brands were hammered, wiping out hundreds billions in market value. The Nasdaq Composite fell to its lowest point since June 2020.

One day later Federal Reserved raisedIn an effort to combat inflation, its benchmark interest rate was reduced by half a percentage point. Investors fled the area of the market generally considered as the growth driver on fears that the economy might be in trouble.

Big Tech A massive sale occurred. AmazonAnd Facebook Owner Meta owner each dropped 7%. Google parent Alphabet Microsoft AppleAll dropped by around 5%. In New York City, 5.1% of the Nasdaq fell by early afternoon.

E-commerce was particularly disappointing for investors after the announcement. ShopifyIt reported disappointing quarterly results, having seen its stock price soar during the pandemic. earnings and revenue. The stock plunged 15% Ebay EtsyTheir earnings reports also saw double-digit drop in revenue.

As a result of high inflation and fears of rising rates, tech was being displaced. Investors moved to safer areas like financial and energy services. Russia invaded Ukraine in February and further raised oil prices. It also raised concerns about the supply chain and caused a decline in business conditions throughout much of the world.

This year’s first quarter was marked by the worst periodFor the Nasdaq, since the same time in 2020 when the economic downturn began. In the first three months, the tech-oriented index dropped 9.1%. Already down 13% in the second quarter of the year, it is less than halfway through.

Cloud stocks were also a popular choice during Covid when corporations tapped remote services. They were hard hit on Thursday. Bill-payment software developer Bill.comShares fell by 12% while the shares of project management software firm were up by 13% Asana’sThe stock market fell approximately the same.

WisdomTree Cloud Computing Fund fell 7.9% on Thursday, marking the largest decline in value since September 2020.

For certain Covid winners like Netflix, Zoom, Peloton TwilioThe rundown was even more spectacular than the reverse. Their slumps have continued on Thursday, with their respective declines of more than 60% for the past 12 months.

Initial reaction to Fed’s Wednesday commentary was positive by the market, following statements from Chairman Jerome Powell about the Federal Open Market Committee. wasn’t actively consideringA rate increase of more than 50% is not possible. However, investors were skepticism about the prospect of rate hikes continuing, which led to stocks falling across the board.

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