The US stock market witnessed a major crash on Wednesday. In less than two hours, the S&P 500 index fell by about 800 points. Investors lost about $1.2 trillion, which is equal to the total wealth of the world’s richest person, Elon Musk. The biggest decline was recorded in shares of the technology sector. The market is said to be in such a state due to a decision by the US central bank, the ‘Fed Reserve’.
Why did the market crash?
A major decision was taken in the first policy committee meeting held under the chairmanship of the new chairman of the Fed Reserve, Kevin Warsh. The committee has stopped giving ‘forward guidance’ for the coming days and has signaled that rates may be increased by the end of this year. Kevin Warsh said that the end of forward guidance means that investors will no longer have much information about the Fed’s upcoming strategy, which will increase uncertainty in the market. Due to this, investors were impatient and started selling shares. It is worth noting that the Fed has not changed the interest rate for the fourth consecutive time.
Big tech companies are in shock, Musk’s SpaceX has fallen:
The Fed’s decision has led to a sharp decline in the shares of Microsoft, Meta, Alphabet, Amazon and Elon Musk’s company SpaceX, which was recently listed on the stock market.
SpaceX: Shares have fallen by the most, by 4.9 percent. With this, SpaceX has fallen to sixth place in terms of market cap.
Microsoft: Share price has fallen by 3.79%.
Amazon: Shares fell 3.46%, but the company still made it back into the top-5 list.
Alphabet (Google): Shares fell 2.43%.
Nvidia and Apple: Nvidia shares fell 1.33% and Apple shares fell 1.10%.
