Tech Stocks Fall on US Stock Market: Bitcoin Recovers to $54,000
Date: 2024-08-06 Author: Oliver Abernathy Categories: BUSINESS
On August 5, 2024, the US stock market saw a significant drop in the shares of many technology companies. This event became the sharpest decline in the S&P 500 and Dow Jones indices since September 2022. At the same time, the Bitcoin rate demonstrated recovery, exceeding the $54,000 mark. Let's take a closer look at the reasons and consequences of these changes in the market.
Indices and Their Fall
Immediately after the opening of the trading session, the shares of many technology companies fell sharply in price. According to Yahoo Finance, the Dow Jones Industrial Average, which includes 30 leading US companies, fell by 2.4%. Forbes noted that this led to the worst losses since September 2022.
The S&P 500, which tracks the performance of the 500 largest US companies, fell more than 3%. The Nasdaq Composite, which includes more than 2,500 companies, fell 6.2%, the sharpest drop since March 2020.
Forbes analysts said that the global stock market crash has affected the shares of the largest US technology companies, which have fueled the boom over the past two years. Now they are on the verge of their most significant decline since the onset of the COVID-19 pandemic.
Despite the significant decline, the current decline is not a "crash". The market correction has been brewing for a long time, especially in the technology sector.
Reasons for the Fall
The fall in the US stock market was preceded by a collapse in Asian markets. Savich noted that the reassessment of the Japanese Central Bank's positions began two weeks ago, and the current collapse is the apogee of this process. In his opinion, the revaluation of the largest technology companies inevitably led to the fall of the Nasdaq index.
The expert also mentioned that macroeconomic events, including the actions of a large seller, affected the cryptocurrency market, which contributed to fluctuations in the Bitcoin rate.
Recovery of the Bitcoin Rate
After the opening of the American stock market session, the Bitcoin rate began to recover, exceeding the $54,000 mark. At the time of writing, the first cryptocurrency is trading near $54,200. This growth partially offset the recent losses caused by the fall in stock markets.
The reasons for the recovery of the Bitcoin rate are related to its increased attractiveness as an alternative investment asset against the backdrop of volatility in traditional markets. Many investors see Bitcoin as a "safe haven" during periods of economic uncertainty.
The fall of technology company shares on the American stock market on August 5, 2024 was a significant event that caused a stir among investors and analysts. At the same time, Bitcoin has shown its ability to recover, strengthening its position at $54,000. This case highlights the importance of diversifying investment portfolios and paying attention to macroeconomic factors that influence markets.
