After the good news about the US CPI data, traders chose to withdraw from the recent strong performance of technology giants, causing heavyweight stocks Nvidia to close down 5.57%, Tesla down 8.44%, Meta down more than 4%, and Apple, Microsoft, Google and Amazon down more than 2% respectively.
In contrast, the Russell 2000 index, which is dominated by small-cap stocks, closed up more than 3.5%.
The market value of the "Big Seven" evaporated by a total of nearly US$600 billion (about RMB 4.35 trillion) in a single day, which is equivalent to losing a JPMorgan Chase.
The sharp fluctuations in the U.S. stock market this time have attracted great attention from the market.
First, let’s analyze the reasons for this stock market change.
U.S. CPI data showed that inflationary pressures are easing, which is generally seen as good news for the economy.
However, traders chose this moment to exit the tech giant.
This may be related to market concerns about the technology industry.
Although Nvidia's stock price has soared on the back of the artificial intelligence boom, the industry is divided on its future expectations.
At the same time, Tesla's delay in launching its robot taxis has also raised concerns among investors about its prospects.
We can also see that while large-cap technology stocks generally fell, small-cap stocks performed relatively strongly.
This may be because investors believe that small-cap stocks may have more room to grow as the economy recovers.
How should investors respond to such a market environment? First, investors need to remain calm and not be affected by short-term market fluctuations.
Secondly, investors should conduct in-depth research on the company's fundamentals to understand its business model, profitability, and future development prospects.
Only with a deep understanding of the company can you make wise investment decisions.
Finally, investors may consider diversifying their investments appropriately to reduce risks.
Although the sharp fluctuations in U.S. stocks have brought uncertainty to the market, they have also provided investors with new investment opportunities.
As long as we can seize these opportunities, it is possible to get good returns in the market.