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On the eve of the election, if you had the foresight to invest $1,000 in Amazon, you’ll be intrigued to learn about the journey of this investment today. The landscape of the stock market post-election certainly left an imprint, notably with Amazon. While the initial predictions might appear uneventful, the path was filled with fluctuations and moments of excitement.
$1,000 Amazon Investment: The Day Before the Election Impact
Placing $1,000 into Amazon shares on November 4, the day before the election, would have meant buying approximately 62 shares, given Amazon’s closing price at $195.78. Fast forward to November 29, and you would see a rise in share value to $207.89. Thus, your initial $1,000 would now be tallying up 6.2%, rounding up to an impressive $1,062.
The Aftermath of a Brief Rally: Market Uplift
Amazon was among the key beneficiaries during a brief yet noteworthy rally following the presidential election triumph. This surge uplifted the stock market until its peak on November 8. CNBC reported that while the S&P 500 soared by 4.66%, the Dow rose by 4.61%, and the Nasdaq outperformed with a 5.74% increase. However, the thrill subsided by the start of the new week.
Tech Stocks and the Amazon Plunge: A Double-edged Sword
Charting Amazon’s trajectory, it’s clear that it not only soared quickly but experienced a sharp descent too. Those swift to sell their shares by November 13 would have garnered an impressive 9.36% return—a stark contrast to the standard market performers. Yet, the following downturn saw significant equity losses among tech giants.
Amidst rampant speculation and rapid buying, notable technology firms experienced a dramatic nosedive. According to Forbes, by November 15, leading companies experienced substantial sell-offs, totaling $500 billion in value, with Amazon and Nvidia each shedding $90 billion.
Risk-taking is inherent in trading, and while Amazon presented lucrative returns initially, it also underscored the unpredictable nature of the markets. Timing proves vital yet consistently elusive.
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