Every time there is a sharp drop in stocks in the world’s stock markets, it causes excitement among investors and analysts. During this week, the stock prices of many leading technology companies suffered a significant decline. In particular, the shares of such giants as Apple, Microsoft and Alphabet (Google) lost a significant part of their value. The decline of the Japanese stock index Nikkei became the biggest in recent decades. Are there reasons for panic and how it can affect the world economy?
Technological giants: dangerous concentration
Newspaper Corriere della Sera analyzes the situation, emphasizing that the significant growth of American technology companies, linked to the digital revolution and the development of artificial intelligence, has created a dangerous concentration in the stock markets. Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta and Tesla now have a combined market capitalization of more than $13 trillion, more than the annual gross domestic product of the Eurozone. Such dominance by a few companies can have serious consequences for the global economy.
Crisis as an opportunity
La Libre Belgique from Brussels reassuring, saying that such corrections are normal for a healthy market. Stock indexes have been driven higher by the seven tech giants in recent months, causing significant volatility. The current situation may be a good opportunity for investors to review their positions.
Delayed reaction
German Handelsblatt believes that the fall in shares could have started much earlier. The historic return of inflation, attempts by central banks to contain inflation by raising interest rates, rising government debt and geopolitical risks are all factors that markets may have ignored for a long time, but are now beginning to affect the stock market.
Signs of recession
Portuguese Jornal Económico points to a decline in oil prices as an indicator of a global economic slowdown. Instability in the Middle East and Venezuela did not cause prices to rise, pointing to lower oil demand and a general economic slowdown.
US influence
Turkish portal Posta notes that the US Federal Reserve plans to keep interest rates high to control inflation. This could lead to a recession in the US, which would have serious consequences for the global economy, especially for Japan and Europe. High interest rates deter investment, especially in the construction industry.
Thus, the fall in share prices is a multifactorial phenomenon that reflects the general state and trends of the world economy. Despite the different opinions of analysts, it is important to monitor the development of the situation and draw appropriate conclusions for investors and companies.
