It’s a weak session for the markets and tech stocks are amongst the key losers. Stocks Infosys, Tech Mahindra, Wipro are down as much as 3% intra-day and exerting significant pressure on the benchmark Indices. The Nifty IT Index is down over 1% and the stocks that are under pressure include L&T Technology Services, Mphasis, and Coforge.
The slump in tech stocks is primarily on the back of slowdown concerns in the US and the sharp sell-off across Wall Street overnight. Tech stocks have taken a significant beating, with the Nasdaq Composite plunging 4%, its worst drop since 2022. The ripple effect is evident in India as well, where IT giants like Infosys, Wipro, and Tech Mahindra are struggling to stay afloat.
Tech-heavy Nasdaq sees a meltdown
The US markets witnessed a brutal selloff, triggered by growing fears of a recession and concerns over new trade tariffs. The Nasdaq plunged 4%, with the seven largest tech firms losing a staggering $750 billion in market value in a single session. Companies like Apple, Nvidia, and Tesla faced sharp decline, setting off panic waves across global markets.
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Tesla, in particular, saw a 15% drop, its worst day since 2020, wiping out $130 billion in value. Meanwhile, Microsoft, Alphabet, Amazon, and Meta also suffered losses ranging from $50 billion to $98 billion each. This steep decline in the US tech sector has cast a shadow over Indian IT stocks as well.
Fears of a US recession
Investor concerns over a potential recession in the US is deepening. The US bond market is flashing warning signals, with yields dropping as uncertainty looms large. The fear that higher tariffs and restrictive trade policies could slow down the US economy has sparked a flight to safety, leading investors to pull money out of tech-heavy portfolios. Additionally the street is worried how a weak US economy can support businesses dependent on the economy there. The tech sector in India is one such example.
Global trade tension escalates
US President Donald Trump’s fluctuating trade policies have intensified market jitters. The imposition of tariffs and potential trade restrictions on major economies like China,
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