The COVID-19 "pandemic" is not over, but the stock market boom brought about by the epidemic seems to have come to an end.
Interest rate hikes are gradual, and technology stocks are under pressure. Yesterday, the US stock market dived, the three major stock indexes closed down across the board, the leading technology stocks fell together, and Netflix was even more devastated after the release of the financial report. Today's European stocks collectively opened low, and the Netflix market continued to fall by nearly 20% before the market.
Following the U.S. stock market sell-off yesterday, the main European stock indexes collectively opened low in the afternoon, the German DAX index fell 1.54%, the British FTSE 100 index fell 0.96%, the French CAC40 index fell 1.39%, the European Stoxx 50 index fell 1.40%, the European Stoxx 600 index fell 1.42%, and the underlying resources stock fell 2.9%.
The UK's Gfk consumer confidence index fell from -15 in December to -19 in January, the lowest level since February 2021, with soaring inflation and the possibility of further rate hikes dampening the consumption outlook.
In terms of U.S. stock futures, S&P 500 futures fell 0.28%, Dow futures fell 0.2%, and Nasdaq 100 futures fell 0.65%.
Technology stocks are under pressure, and Netflix and other epidemic beneficiary stocks have been hit hard
As interest rate hikes approach, technology stocks are under tremendous downward pressure, and major U.S. stocks closed down yesterday. The Nasdaq 100 index fell 9 percent this month, its biggest monthly decline since 2008.
Tech giants like Microsoft and Apple will be announcing quarterly results next week, and Gene Munster, co-founder of investment firm Loup Ventures, said that this will undoubtedly cast a shadow over the tech industry, and the tech sector will be in a state of tension until it receives news of Apple's results and the Federal Reserve.
It is worth mentioning that Netflix and internet celebrity fitness platform Peloton both plummeted on Thursday, Netflix's profit and revenue in the fourth quarter were higher than expected but the number of paid users of the net streaming media in the first quarter was expected to be much lower than market expectations; Peloton is cutting costs and suspending the production of bicycles and treadmills to cope with the slowdown in demand.
After Thursday's plunge in late trading, Netflix fell nearly 20% before session on Friday, and if it continues to weaken, it will be Netflix's biggest decline in nearly a decade. Peloton rose 7 percent before session after a 24 percent plunge on Thursday.
The two companies were the stock market "darlings" during the pandemic, and after the outbreak of the new crown, the Fed's lockdown measures and loose monetary policy pushed stocks such as Netflix to soar.
Other COVID-19 beneficiary stocks are also in the "water", video conferencing software Zoom stock price is at its lowest level since May 2020, and so is the stock price of electronic signature company DocuSign, both of which have fallen by more than half from their all-time highs and fall further after Netflix's earnings report.
Traditional media companies with streaming businesses have been hit, such as Disney and Viacom CBS. According to Bloomberg, Macquarie Capital analyst Paul Golding said:
We had thought that there could be a soft landing in demand in the post-pandemic era, and the current situation has shattered those hopes to some extent.
The warning sounded: the "bubble" is about to burst, and the US stock market will plummet
Morgan Stanley's economic team has adjusted its expectations for Fed policy, which is expected to accelerate tightening, with the S&P 500 likely to revise downwards by 10-20% in the first half of this year.
Earlier, the article also mentioned that Jeremy Grantham, founder of hedge fund GMO, warned that the S&P 500 index would plunge 50% from the all-time high of 4800 points a few weeks ago from the bursting of the huge, epic bubble.
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