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The stock market has suffered a divide in the past week, technology shares continuing to drop after Donald Trump was appointed President-elect. Amazon is experiencing the worst decline, as the company’s total share value has lost over $30 billion in just a week. The tech market is now fearing for the worst as Amazon shares are not the only ones to plummet.
Why Are Amazon Shares Dropping?
During the presidential campaign, most representatives of the technological industry chose to endorse Secretary Hilary Clinton, going all out in the hope that she will take the Oval office seat. Moreover, some companies even went as far as to create anti-Trump campaigns, a move that is now costing them a considerable part of their share value.
Jeff Bezos, Amazon CEO and owner of the Washington Post, placed the worst bet of them all, making an enemy out of the President-elect before the election race ended. Mr. Trump accused Bezos of purchasing the Washington Post for his own gain, using the popular news source to obtain influence among the Democrat party. The Republican also stated that Amazon’s CEO was trying to avert antitrust scrutiny by means of the influential paper.
Most Tech Companies Are Suffering
However, Amazon is not the only company that is paying a steep price for endorsing Secretary Clinton. The S&P Index also fell by 4.2 percent, while all benchmark tech stocks registered a 3.1 percent plummet in only four days.
Furthermore, other tech giants like Alphabet, Facebook, and Apple have registered the biggest drop since September, the S&P 500 losing yet another point in its joint stock value as the FANG block brought a 2.4 percent drop to the four companies.
Other Sectors Are Blooming
By comparison, the Russell 2000 Index’s share value rose by 1.2 percent, a record climb for the small caps. Moreover, banks managed to extend their gains with approximately 11 percent in the last week, while industrial shares managed to climb with over 5 percentage points, a well-received surge for an industry threatened by green energy.
For the moment, the only explanations for the sudden change were the immigration and trade policies. Some voices even dared to invoke that the tech giants are now the victims of campaign retaliation.
Other business analysists believe that the drop is normal seeing as tech companies have flourished for four years, not registering a single decline in stock market value. Social media companies and Internet giant Google occupy almost half of the top 10 most prominent American companies, mirroring the importance of the world wide web.
For now, predictions are not looking good for Amazon shares. The Fang block is also believed to continue, while the industrial United States is predicted to flourish.
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