September 2020 is turning out to be a difficult month for the overall stock market. But the fall is expected to be the worst for the big five that is heading straight towards the worst bullish moment in the Wall Street stock market since March.
Dow Jones Industrial Average charts out that the high-flying tech giants occupying the top tier in the stock market is going to face the sharpest monthly fall ever recorded. This is to refer to companies like, for example, Facebook Inc. (FB, +2.27%), Apple Inc. (AAPL, +3.37%), Amazon.com (AMZN, +2.49%), Microsoft Corp. (MSFT, +2.27%), and Alphabet Inc. or Google’s parent company (GOOGL, +1.13%, GOOG, +1.16%).
September 2020 Tops The Steepest Monthly Fall Record In The Stock Market After October 2018
This quintuplet of the stock market has reportedly lost approximately $817 billion of stock value till now in September 2020. The September swoon has not been easy on these heavy weight stock market companies leading them to an even sharper fall by the end of the month.
While the stock market big 5 lost $817 billion of market value till September 2020, it is nowhere close to the $425 billion loss in stock value suffered in October 2018. That record has been easily erased by the extraordinary loss furthered by the global pandemic.
Rough Month For ‘FAANG’ After Five Months Of Pandemic
Netflix, which also assumes a place amidst the popular tech giants, collectively known as FAANG (Facebook, Apple, Amazon, Netflix, Alphabet or Google) has suffered a monthly loss of $24 billion in Stock market value. This is its sharpest fall since October 2018 as well.
The group behemoth and the largest American company in terms of stock market value has shed approximately $322 billion so far in September. This is the highest contraction Apple has faced in the company’s history.
This comes after Apple added a remarkable $934 billion to its net stock market value since March 2020. This was in contrast to the overall market which sunk to the rock bottom after the coronavirus pandemic took its toll on the global market economy.
During this pandemic stretch, Facebook, Amazon, Apple, Microsoft and Google’s parent company Alphabet have added $2.6 trillion combined, according to market charts by DJIA (Dow Jones Industrial Average).
The rise in the tech shares during the pandemic months has been helpful for DJIA, the Nasdaq Composite Index and the S&P 500 to clamber above the pandemic scare.
Nasdaq Composite and S&P 500 are recently going through a correction which recently gave a stock market high during the end of September 2020. However, DJIA has not been able to earn from this fresh high and is in a bullish state since February 2020.
A chief investment strategist, Lindsey Bell mentions that September has been awful for the stock market but tech giants are helping them take one on the chin. Others mention that the tech story is greater than the September dip.