Wall Street accelerates the sell-off of large-cap tech stocks

Buffett's sell-off of Apple shares draws attention as US tech stocks face multiple pressures.

On August 18, the website of Fortune magazine in the United States reported that "stock god" Warren Buffett revealed earlier this month that he had sold half of his holdings of Apple Inc. in the United States. This move has aroused great concern in the market. Some interpretations believe that this may not only mean that Apple's stock price has peaked, but also reflects the overall bubble risk of US tech stocks. In the past month, tech stocks in the US Nasdaq 100 index have experienced a sharp decline.

Analysis points out that the violent fluctuations in US tech stocks are the result of the combined action of multiple factors. On the one hand, investors are worried about the possible recession of the US economy, and at the same time are concerned that the artificial intelligence concept is difficult to monetize and its business potential may be seriously overestimated. On the other hand, the recent poor performance of US employment data is also related to this.

According to the website "Investopedia" in the United States on August 16, before the "sell-off wave" of US stock tech stocks, especially leading technology companies, at the beginning of this month, some major Wall Street investment institutions such as several large hedge funds had already sold off stocks of technology giants. Silicon Valley giants such as Alphabet, the parent company of Google, and Meta have recently invested huge amounts of money in the field of artificial intelligence, but investors expect to see the return prospects. In addition, many hedge funds also sold off shares of US chip giant Intel in the second quarter of this year. Recent financial reports show that Intel has fallen into a profit dilemma.

It is worth noting that not only are leading US tech companies under pressure, but many technology startups are also facing survival problems. The Financial Times of the United Kingdom reported on August 19 that in the past year, the bankruptcy rate of US startups has jumped by 60% because business founders have exhausted the funds raised during the "technology company boom period" from 2021 to 2022. This trend threatens millions of jobs supported by venture capital and may spread to a wider economic field.

The Financial Times quoted a report from Carta as saying that in the first quarter of this year, a total of 254 venture capital clients went bankrupt, and the bankruptcy rate was more than seven times higher than in the same period in 2019. The report ***yzes that the experience of US tech startups is the aftershock of the consequences of the Federal Reserve's interest rate hike in 2022. After the collapse of Silicon Valley Bank last year, the venture capital received by US startups dropped significantly, leaving many companies in trouble.