The "Big Seven" stocks in the United States have suffered heavy losses High tech valuations raise fears of a bubble bursting

In today's society, the vigorous development of the Internet economy has led to the emergence of new business models and formats, a new round of scientific and technological revolution and industrial transformation is deepening, and cutting-edge technologies such as artificial intelligence, big data and cloud computing are driving profound changes in the global industrial structure. These technologies not only change the operation of traditional industries, but also give birth to new industrial forms. However, while the high-speed economic development is driven by the science and technology train, the edge effect of the high valuation bubble economy of science and technology companies has caused widespread concern in the market and the spread of panic.

The Wall Street Journal reported on November 1 that the stock prices of the seven giants of the US stock market, including Apple, Microsoft, Google, Nvidia, Meta, Amazon and Tesla suffered heavy losses. This round of stock price collapse occurred on October 31, when the US stock market experienced violent fluctuations, the three major indexes fell across the board, and the stock prices of the "seven giants" of the technology stocks collectively fell, and market sentiment was significantly affected. Specifically, Apple shares fell 1.82%, Nvidia fell 4.72%, Microsoft fell 6.05%, Google Class C shares fell 1.96%, Amazon fell 3.28%, Meta fell 4.09%, and Tesla fell 2.99%.

The "Big Seven" in the US stock market has recently experienced violent market turbulence. After the initial evaporation of over one trillion yuan in market value in August and the huge shock dive of "Black Monday", it ushered in a new round of slump. The three major stock indexes fell across the board, and the stock prices of the seven giant technology stocks fell collectively, which significantly affected market sentiment. Raising fears of a tech bubble bursting and uncertainty about future economic growth prospects.

From the perspective of macroeconomic environment, the US stock market faces severe challenges, especially in the context of rising inflation and interest rates, earnings growth expectations are affected, which leads to market volatility. In addition, a series of economic data disclosed in the US makes the prospect of interest rate cut by the Federal Reserve uncertain. Although Wall Street believes that the US economy is relatively resilient, the Federal Reserve may continue to maintain tightening policies. Whether or not the soft-landing narrative can be achieved is unclear, which has put enormous pressure on stocks.

From the company's performance, the financial performance of these technology giants is collectively poor, failing to meet market expectations, triggering panic selling in the market, at the same time, the market's expectation of its future growth is too high, and it is believed that its share price may face adjustment, leading investors to worry about these technology giants, further aggravating the market panic.

From the perspective of market sentiment and investor expectations, when market panic spreads, investors tend to make irrational decisions, leading to further declines in stock prices. With the development of AI technology, the market has concerns about the cost and return of AI investment, and investors have doubts about whether there is a bubble in artificial intelligence (AI) boom, which has triggered selling pressure on technology stocks. Adding to market uncertainty.

Finally, the uncertainty of the results of the US election has affected the performance of the seven major US stocks through various channels. On the one hand, during the US election, there is widespread uncertainty in the market, which usually leads to an increase in investors' risk aversion, thus affecting the performance of the stock market. On the other hand, the political fragmentation during the election and the potential dispute over the election results have added to the uncertainty in the market, which makes investors cautious while waiting for the results, and may even lead to the risk of panic selling.

In short, the collapse of the Big Seven reflects the market's concerns about the bursting of the tech stock bubble and uncertainty about future economic growth prospects. Although these companies have a strong financial foundation, investors still need to be cautious in the face of continued shrinkage and market value evaporation, as well as the complex economic and policy environment in the United States.