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Earlier this week, Apple’s value reached $ 2.3 trillion (£ 1.7 trillion), more than the combined value of the FTSE 100.
Shares on Wall Street fell on Thursday as shares in the five largest US companies fell.
The companies that have propelled US markets to all-time highs – Apple, Amazon, Alphabet, Microsoft and Facebook – fell between 5% and 7% in afternoon trading.
Analysts said fears about the economic impact of the coronavirus and a possible second wave led to the selloff.
The Nasdaq Heavy Technology Index was down 5%, while the Dow Jones was down 3%.
Concern for the health of the US economy has been mounting. While the latest initial weekly jobless claims fell more than expected, they remain high amid concerns that job growth could stall without further economic stimulus.
Chicago Federal Reserve Chairman Charles Evans said Thursday that Congress would need to provide more fiscal aid. And he indicated that US monetary policy would be further relaxed and interest rates would remain at ultra-low levels for years to help the economy regain its pre-pandemic strength.
The Vix index, also known as the “fear gauge,” underscored growing concerns about America’s economic health. This reached its highest level since mid-July.
The sentiment was not helped by a warning from US infectious disease expert Dr. Anthony Fauci, who said there are doubts a Covid-19 vaccine will be developed by the end of October.
United States election
The recession in the United States affected European markets. London’s FTSE 100 closed 1.5% lower at 5,850 points, and Germany’s Dax fell 1.4%.
Wall Street had hit new highs this week in what Connor Campbell, a financial analyst at Spreadex, called “a combination of relatively unfounded vaccines and stimulus speculation.” Markets are now experiencing a “sharp turnaround,” he said.
On Wednesday, the S&P 500 and Nasdaq closed at record highs, and the Dow was within 1.5% of its February peak.
Emily Roland, co-director of investment strategy at John Hancock Investment Management, said markets needed to check the reality.
“Think about the increasing amount of risks that the market has been ignoring for the past few months. We are 60 days away from the election. That may be an area where investors are getting a little scared,” he said.
