Markets are looking to finish in the red for the week as big US tech companies are leading the decline. Tensions have eased in the Middle East and, remarkably, oil has returned to the pre-war prices of late February so the market’s attention this week shifted to US tech companies.
While markets remain generally positive on the outlook for these companies, some investors are becoming jittery over valuations. These companies have become so large that day-to-day changes in investor attitudes toward these stocks are moving markets around the world. For example, just 7 US tech companies combined are now worth more than the entire European stock market.
Individually, many of these tech companies are now worth more than the economies of major countries. Nvidia is now worth more than the German economy, the 3rd largest economy in the world.
There’s an old saying that describes the outsized influence of the US economy in the world – “when the US sneezes, the world catches cold.”
Today, it just takes a sniffle in US big tech to ripple through global markets as it has this week.
Have a great weekend.
Jack C. Harmon II, CFP®, CIMA
Principal, Harmon Financial Advisors
Registered Principal, Raymond James Financial Services
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