A massive selloff wiped out nearly $5 trillion from global markets this week, driven by a combination of Federal Reserve signals and disappointing earnings from major tech companies. The downturn affected stocks, precious metals, and cryptocurrencies, with US stocks leading the losses at $2.0 trillion. Gold and silver also saw significant declines, with gold shedding $1.38 trillion in value, while cryptocurrencies lost $125 billion.
The week began with markets near their highs, but sentiment shifted dramatically on Wednesday when the Federal Reserve held interest rates steady. However, two Fed officials voted for a rate hike, sparking concerns about tighter monetary policy. The situation worsened on Thursday as inflation data showed a 3.6% increase, and Google's stock plummeted by 12.6%, leading to the Nasdaq's worst day since June.
Friday brought further losses as Amazon missed earnings estimates, Intel issued weak guidance, and Reddit's stock dropped by 29%. The S&P 500 fell by 1.8%, and the Nasdaq declined by 2.9%, exacerbating the broader market rout.