Indicators Wall street operate in red this Monday and confirm the movement of price adjustment after record streak milestones achieved last year.
While the trend was anticipated by traders, which relied on the conclusions of the Federal Reserve minutes released last week, the The speed and depth of the price cut continues to attract attention.
In the last four months, Mercado Libre’s market capitalization fell by 46%, equivalent to some USD 43.7 billion
Within the universe of technology companies that are traded on Wall Street, the drastic low for the roles of the “unicorns” Argentines, Mercado Libre and Globant, which post a 25% loss in dollars in January, with only six operational wheels in progress.
The technological average Nasdaq was the one that rose the most with the stock market euphoria during the two years of the pandemic. On November 19, less than two months ago, it exceeded a maximum of 16,000 points, but since then the adjustment has been noticeable, almost 1,500 points or 9.2%, now in the area of 14,580 points.
After two years of stock market euphoria, tech companies are going through a negative period in anticipation of the rate hike
Free market (at USD 1,012) broke the floor of USD 1,052 on December 3 this Monday, and today is traded 46% below its recent September 7 high last, when it touched $ 2,000 and closed at $ 1,953.
In market value, it represents a loss of $ 43.7 billion in four months, from about USD 100,000 million (USD 94,758 million) to USD 51,075 million this January 10.
Although it is a smaller company, Globant’s fall was of similar proportions to those of the company founded by Mark Galperin.
Faced with the generalized falls, the collapse of Argentine papers was even broader
Globant reached a record of USD 354 on November 9. In less than two months it cut 33%, at $ 238 this Monday, below the $ 252 floor on December 3. In market capitalization, the decline was about USD 4.8 billion, from USD 14.6 billion to USD 9.8 billion.
A global phenomenon
A report from Bloomberg specified that a Nearly record number of tech stocks has plummeted by 50%, which represents an echo of the collapse of dotcoms.
About “Four out of 10 companies in the Nasdaq Composite Index have seen how their Market values halved from their highs 52 weeks, while most members of the indicator are caught in bear markets, “according to Jason goepfert, director of research at Sundial Capital Research.
Mercado Libre and Globant, two unicorns that are emblems of the value of domestic technology companies
“The announcement by the FOMC Federal Open Market Committee) from the Federal Reserve it overshadowed optimism. The agency announced a acceleration in the withdrawal of stimuliHe also pointed out that the first rate increase would arrive in March, reflecting optimism in the economic recovery. This creates downward pressure on growth stocks and risk assets in general, along with some sentiment in the financial sector, “he summarized Priscilla bruno, an analyst at Rava Bursátil.
The sharp decline in technology is part of the expectation that the Federal Reserve will begin its monetary policy tightening cycle with an interest rate hike as early as March. Goldman sachs now expects the Fed to raise its interest rates four times this year, in line with analysts’ opinion of JP Morgan and Deutsche Bank.