April was the worst month for the tech-heavy Nasdaq Composite in over a decade as many tech giants faced steep losses amid surging inflation, creeping interest rates, and increasing recessionary fears.
According to the Wall Street Journal, the losses have “erased trillions of dollars in market value” among the tech giants that have dominated much of the economy in recent years. The selloffs have affected software, semiconductor manufacturers, social media platforms, and others.
The Nasdaq fell by 4.2 percent on Friday alone, ending the month off more than 13 percent. April was its worst month since the economic crisis in October 2008. For the year the tech index is down 21 percent. That means 2022 has held its worst first quarter in history.
The broader exchanges also saw significant losses in April. The S&P 500 ended the month with four straight weeks of losses and down 8.8 percent for the month. It is off 13 percent year-to-date. The Dow Jones Industrial Average fell 4.9 percent in April and is down over 9 percent in 2022.
April was the worst month for the S&P 500 and the Dow Jones Industrial Average since the beginning of the COVID-19 pandemic in March 2020.
The Wall Street Journal said in its report that the dramatic drop in tech based stocks is an indication of a “dramatic shift’ in overall trends. Even though tech stocks were largely credited with keeping markets away from total disaster during the pandemic, many investors appear to now be less optimistic about their future.
Netflix fell by 49 percent in April and PayPal Holdings was down 24 percent for the month. Meta Platforms (parent of Facebook), Apple, Amazon, Netflix, and Google have lost as a group more than $1 trillion in market value in just the last month.
Stocks began 2022 at record highs, but the reality of continuing inflation and the threat of rising interest rates has contributed to rapid declines. Consumer prices surged 8.8 percent in March, marking the largest number in more than 40 years. The Commerce Department also reported last week that the U.S. GDP contracted by 1.4 percent in the first quarter.