With significant drops in the United States tech stocks including Amazon, Tesla and Netflix, the savings of millions of Britons are now considered at a risk. Investment in such stocks has been highly popular in some of the leading funds including pensions in the United Kingdom.
Moderna, Amazon, Tesla and Netflix are some of the top US companies are constituentsÂ of the Scottish Mortgage Investment Trust worth about 13 billion pounds and Baillie Gifford American trust worth 4.4 billion pounds.
Netflix was one of the most outstanding performers during the COVID-19 pandemic period as people were forced to stay indoors and the growth of its subscriber base rocketed. Similarly, stocks of Apple, Alphabet, Meta, Tesla and Amazon jumped astonishingly in 2020 and 2021.
The huge gain in the Netflix stock was due to the work-from-home and stay-at-home activity of many Britons. This led to directly or indirectly investments made in the company. Many opted to ride on the Nasdaq waves. It is simultaneously not to forget that many Britons are now Netflix customers.
In recent months, the main troubles for tech companies are macro conditions. Inflation is at a peak for more than a decade and Federal Reserve is learned to be increasing the interest rate.
Apart from all these,Â Russia's invasion of Ukraine has led to the rattling of the fragile stock market. The geopolitical unrest has resulted in volatility. Oil prices are increasing at a rapid pace due to the ban on imports of oil and gas from Russia. The oil prices are rallying to the highest ever in more than a decade. Simultaneously, the commodity prices of necessary items have rocketed.
The Russia-Ukraine war started on February 24 and there has been no solution even after two months. A couple of peace talks between the two countries have ended up without any success.