Google Shares Drop Over 2% as Tech Valuations Hit 2022 Lows
Google shares fell more than 2% in today's session, joining major growth peers as tech valuations returned to April 2022 lows. Rising crude above $100 a barrel and the Cboe VIX climbing to 31 points prompted investors into a risk-off stance, pushing the Nasdaq deeper into correction territory.
1. Rising Volatility and Oil Prices
The Cboe Volatility Index surged from around 13 points at the start of the year to 31 points as geopolitical tensions drove a spike in risk premiums. Concurrently, West Texas Intermediate crude topped $100 per barrel, reinforcing a broad market shift toward safer assets.
2. Google Intraday Decline
Shares of Google fell more than 2% during today's trading session, underperforming the broader market as investors rotated out of high-multiple growth names. The drop mirrored similar losses across other major tech firms, including Apple, Microsoft and Nvidia.
3. Tech Valuations at 2022 Lows
Major growth stocks have retraced to valuation levels last seen in April 2022 when tariff concerns first rattled markets. The multiple compression reflects rising interest rate expectations and mounting uncertainty over future profit growth.
4. Nasdaq Enters Correction Territory
The Nasdaq Composite slid an additional 460 points, extending its decline to more than 10% from recent highs and confirming a correction. The index’s pullback highlights the broader risk-off mood that has gripped equity investors this week.