Wall Street falls. Bigtechs are once again in disfavor with investors

Tuesday's session on the New York stock exchanges brought severe declines in the main stock indices. Large technology companies, which have become so fashionable in recent years, were especially overvalued. Gold had its best day since 2008, and PayPal shares dropped by 20%.

It is said that investors are increasingly skeptical whether trillions of dollars in spending on data centers feeding generative AI algorithms will bring a satisfactory rate of return. On Tuesday, shares of Nvidia fell 2.8%, Broadcom 3.3% and Microsoft 2.9%. The latter has been discounted by a total of almost 15% over the previous four sessions. Alphabet's stock fell 1.2%. The company will publish quarterly results after Wednesday's session.

Once again, IT companies have been hit hard in recent weeks. In their case, there is a fear that AI technology will increase competition in the industry and reduce margins. As a result, Oracle's stock fell by 3.4%, Salesforce and IBM by nearly 7%, and Intuit by 11%.

As a result, the Nasdaq Composite, burdened by technology companies, recorded a decline of 1.43% and ended Tuesday's session at 23,255.19 points. The S&P500 index gave up 0.84%, falling to 6,917.77 points. However, the Dow Jones lost only 0.34%, falling to 49,241.06 points.

However, after Friday's crash and Monday's tumult, there was a strong recovery in the precious metals markets. Gold increased in price by almost 7% and, having had the best day since 2008, it is once again valued at nearly USD 5,000/oz. Silver increased by up to 15% during the day and ended the day with an increase of over 10%.

The green spot in the IT sector were Palantir's shares, which grew by almost 7% after the publication of the fourth quarter report. Shareholders of PayPal ended the day in a different mood, with its stock price falling by 20%. Investors were disappointed with the forecast of this year's financial results of the company.

Shares of pharmaceutical companies popular over the previous two years also fell. Novo Nordisk's stock dropped by nearly 16%. The manufacturer of Ozempic warned of another sharp drop in sales. Shares of competitor Eli Lilly fell by 4%, and the price of Structure Therapeutics dropped by almost 7%. Shares of the heavyweight pharmaceutical giant were also significantly discounted. Pfizer's stock fell 3.5% despite the publication of quite solid quarterly results.

However, the shares of oil companies rose in price. Exxon Mobil shares gained 3.8% and Chevron shares gained 2.3%. This is all due to the rising price of oil, the price of which increased by 3% after the US military shot down an Iranian drone over the Arabian Sea.

K.K

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