Silicon Valley giants including Google, Facebook, and Apple lost more than $200 billion in market capitalization on Monday as the major stock indices plummeted on growing global fears surrounding the coronavirus.
Shares of Apple, Google parent Alphabet, Amazon, Microsoft, and Facebook all dropped by 4 percent or more during trading on Monday, resulting in a collective loss in excess of $200 billion. Business Insider, which first reported the drop, noted that Apple gave up the most, losing more than $60 billion from its $1.4 trillion market capitalization.
Microsoft also gave up just under $60 billion, while Amazon and Alphabet saw their market caps decline by more than $40 billion each.
On Monday, the Dow Jones Industrial Average dropped by its biggest percentage in nearly a year, closing down 1,031.61 points, or 3.56 percent, to 27,960.80.
The S&P 500 fell 3.35 percent while the Nasdaq Composite dropped 3.71 percent.
Analysts blamed growing fears that the spread of the coronavirus could turn into a global pandemic, disrupting markets and trade around the world.
Apple warned in an earnings call this month that its financial results will take a hit due to the coronavirus, saying that it will miss revenue expectations for the current quarter. Apple blamed “supply shortages” for the iPhone, which is manufactured in China.
The biggest losers on Monday were stocks associated with global travel and leisure. The airline sector overall was down 6.1 percent. Shares of cruise companies also plummeted in Monday trading.
President Donald Trump sought to allay fears, tweeting Monday that the “coronavirus is very much under control in the USA. We are in contact with everyone and all relevant countries.” He added that the “stock market starting to look very good to me!”
The Coronavirus is very much under control in the USA. We are in contact with everyone and all relevant countries. CDC & World Health have been working hard and very smart. Stock Market starting to look very good to me!
— Donald J. Trump (@realDonaldTrump) February 24, 2020
The Trump administration is seeking $2.5 billion from Congress to fight the spread of the coronavirus. But Democrats in Congress are trying to blame the president for the spread of the virus, claiming that the White House hasn’t established a coherent plan.
Some tech giants saw their shares rise slightly in early trading Tuesday as investors began hunting for bargains. Shares of Apple, Alphabet, Facebook, and Microsoft were up less than 1 percent in morning trading.