An intensifying selloff hit global markets yesterday, with stocks, crypto, and even gold dropping sharply.
The rout, partly fueled by investors’ worries of a US equities bubble, led to the Dow Jones Industrial Average’s worst three-day stretch in months, with tech stocks particularly hit: Nvidia, the world’s most valuable firm, lost almost $100 billion from its market capitalization.
Analysts have for months warned of an over-concentration of capital on the so-called “Magnificent Seven” tech firms, with some questioning whether the companies will be able to generate the extraordinary revenues needed to justify their soaring valuations.
Meanwhile abroad, experts warn of a deepening global exposure to American stock markets, with foreign investors owning a record share of US equities.
