COVID-19 Direct Hit... IT Giants Big 5 Lose 503 Trillion Won in Market Cap in One Day

On the 12th (local time), as the New York stock market plummeted, a trader at the New York Stock Exchange (NYSE) covered his face with his hands. [Image source=Yonhap News]

[Asia Economy Reporter Seol Gina Jo] The fear of the novel coronavirus infection (COVID-19) pandemic has spread, causing the market capitalization of the global IT giants Big 5, including Apple and Microsoft (MS), to evaporate by more than $400 billion in a single day on the 12th (local time).

According to US economic broadcaster CNBC, the total market capitalization loss of the Big 5?Apple, MS, Facebook, Amazon, and Alphabet, the parent company of Google?on the New York Stock Exchange that day was $416.63 billion (approximately 502.9 trillion KRW), which is a larger drop than the $320 billion recorded on the Black Monday shock on the 9th.

On that day, Apple’s stock price closed down 9.88% compared to the previous trading day. MS also saw a decline of 9.48%. Alphabet and Facebook, Google’s parent company and Facebook respectively, fell by 8.2% and 9.3% compared to the previous close. Amazon’s stock price closed down 7.97%.

This is interpreted as a result of the spread of fear about COVID-19 worldwide following the World Health Organization (WHO)’s pandemic declaration the day before, as well as the impact of the US imposing strict measures banning entry from Europe. CNBC reported, "Until just last month, the five major tech stocks that had driven the long-term bull market of the S&P 500 index were hit hard by COVID-19," adding, "Investors are concerned about the spread of COVID-19 and its impact on the economy."

In particular, it is expected that there will inevitably be adverse effects on the global product production supply chains, including Apple’s iPhone. Earlier, Apple officially confirmed that its quarterly sales would fall short of initial forecasts.

The Big 5 tech stocks have continued to decline since the beginning of the year. Facebook’s decline reached 24.7% compared to the start of the year. Google, Apple, and MS fell by 17%, 15.5%, and 11.8%, respectively. Amazon is also trading at a level 9.3% lower.

Meanwhile, on the New York Stock Exchange that day, the Dow Jones Industrial Average plunged 9.99%, marking the largest single-day drop since Black Monday in 1987. The S&P 500 index fell 9.5% to 2480.64.

This content was produced with the assistance of AI translation services.