By News Zier Editorial Team | Reviewed and approved by Editor-in-Chief
Some of the wealthiest individuals in the world collectively lost $108 billion in a single day. This significant loss occurred due to a sharp global market downturn, which experts have named the “DeepSeek Market Crash.” Investor panic was fueled by rising geopolitical tensions and economic uncertainties, causing major stock markets such as the S&P 500, NASDAQ, and European indices to plummet.
Who Lost the Most?
- Elon Musk, the CEO of Tesla and SpaceX, faced a $12 billion loss as Tesla’s shares dropped 8% following disappointing quarterly earnings.
- Jeff Bezos, founder of Amazon, experienced a $9 billion decrease in wealth due to a 6% decline in Amazon’s stock, driven by slower e-commerce growth.
- Bernard Arnault, chairman of luxury goods company LVMH, saw his fortune shrink by $11 billion amid slowing luxury sales in Europe and Asia.
Why Did This Happen?
- Rising Interest Rates: The U.S. Federal Reserve hinted at further interest rate hikes to control inflation, which unsettled investors worried about tighter monetary policies.
- Global Tensions: Heightened geopolitical conflicts, particularly between the U.S. and China, along with unrest in Eastern Europe, added to market volatility.
- Tech Sector Struggles: Many leading tech companies reported earnings that fell short of expectations, resulting in a ripple effect across the broader market.
How Markets Reacted
- The Dow Jones Industrial Average fell 2.8%, marking its worst performance since early 2023.
- The NASDAQ Composite Index dropped 3.5%, with tech giants such as Apple and Microsoft experiencing significant declines.
- European indices, including the FTSE 100 and DAX, saw losses exceeding 2% amid growing fears of a global recession.
What Experts Say
Jane Richards, a financial analyst at Morgan Stanley, explained, “This market crash is happening because of several factors coming together, like higher interest rates, global political problems, and weaker corporate earnings. Investors are looking for safer options right now.”
What Happens Next?
Market experts predict continued volatility in the coming weeks as investors closely monitor the Federal Reserve’s next steps. In the meantime, several companies have revised their earnings forecasts to brace for further economic turbulence.
Disclaimer: This article was informed by reports from Bloomberg and adapted by News Zier Editorial Team for clarity and additional context.
For more details: visit the original report on Bloomberg.