Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Public money, private plans: MPs demand Post Office transparency

      13 June 2025

      Coal to cash: South Africa gets major boost for energy shift

      13 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      10 red flags for Apple investors

      13 June 2025
    • World

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Investment » Nasdaq 100 loses $1-trillion (again) as tech shares tumble

    Nasdaq 100 loses $1-trillion (again) as tech shares tumble

    By Agency Staff11 April 2022
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    The Nasdaq 100 Index lost more than US$1-trillion (R14.6-trillion) in market value in the past four sessions. Yet its roller-coaster ride may have only just begun.

    The tech-heavy benchmark now has seen more than $1-trillion evaporate from peak to trough every month this year as tighter US monetary policy and surging bond yields ignite concern among investors that the American economy is headed for a recession.

    “It’s too early to turn positive on US tech stocks,” said Edmund Shing, BNP Paribas Wealth’s chief investment officer. “There’s more downside likely very short term” as high inflation leads to slower discretionary consumption, he said.

    There’s more downside likely very short term as high inflation leads to slower discretionary consumption

    The magnitude of the losses reflect the massive size of technology companies, and how far they have to fall: the Nasdaq 100 has returned an average of 38% annually over the past three years versus 26% for the broader S&P 500 Index. Higher interest rates reduce the present value of future earnings, weighing especially on shares of fast-growing companies.

    In January, a whopping $3-trillion was wiped out by the time the rout bottomed out, while February and March were relatively better, seeing selloffs of $1.7-trillion and $1.5-trillion, respectively. Companies in the index have a combined market value of $16.9-trillion, led by Apple, Microsoft and Amazon.com.

    Tech stocks staged a three-week rebound along with the broader market beginning in mid-March. But the war in Ukraine, rising inflation, hawkish US Federal Reserve comments and lockdowns across China triggered another decline last week.

    Inflation threat

    The Fed raised its key rate by a quarter point last month and signalled it expects to lift it to 1.9% by the end of 2022 as the central bank seeks to bring inflation under control. Officials have said they’re open to moving faster if needed, including by hiking a half point at their 3-4 May meeting.

    Some parts of the technology industry also have been hit by the fresh lockdowns in China, which have forced the shutdown of factories and foundries, further disrupting already strained supply chains.

    As a result, chip makers have been the biggest drag to the index, with Nvidia, Marvell Technology and Qualcomm among the worst-performing stocks in the index in the latest selloff. The Philadelphia semiconductor index sank 7.3% in its biggest weekly drop since January.

    For now, industry growth is robust, with global revenue increasing 32% in February from a year earlier, the 11th consecutive month of growth above 20%, according to Harsh Kumar, an analyst at Piper Sandler Cos.

    No bull

    And the broader tech sector may find a bottom soon as long as earnings growth trends remain solid, said BNP Paribas Wealth’s Shing.

    The Nasdaq 100 now is down 14% from its November peak, valuing it at about 24 times projected profits. While that’s still elevated relative to the average of less than 20 over the past decade, it’s down about 20% from the peak in 2020.

    With the selloff in chip stocks, all 30 stocks in the Philadelphia semiconductor index are now down for the year.  — Subrat Patnaik, (c) 2022 Bloomberg LP



    Amazon Apple Microsoft Nasdaq Nvidia
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleW Cape in bid to resume construction of new Amazon HQ
    Next Article Reserve Bank takes South Africa closer to a digital rand

    Related Posts

    China is behind in AI chips – but for how much longer?

    13 June 2025

    10 red flags for Apple investors

    13 June 2025

    Qualcomm shows off new chip for AI smart glasses

    11 June 2025
    Company News

    Huawei Watch Fit 4 Series: smarter sensors, sharper design, stronger performance

    13 June 2025

    Change Logic and BankservAfrica set new benchmark with PayShap roll-out

    13 June 2025

    SAPHILA 2025 – transcending with purpose, connection and AI-powered vision

    13 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.