Amazon Lost $5 Billion in 6 Weeks as Rivian Stock Tumbles

Rivian Automotive stocks have taken a hit alongside the rest of the stock market. Staring from a downfall of 9.61%, the losses of Rivian Stockholders became higher during the last 24 hours with another loss takeout of 12%. On the whole, Rivian stocks lost $200 million in revenues within a short amount of time.

On the other hand, Ford shares sale off took place following an IPO organized by Rivian last week. Ford stocks remained relatively stable at 3.90%. One of the biggest commercial investors of Rivian includes Amazon, which reportedly owns 158 million shares of the electric car manufacturer. Meanwhile, Amazon stocks are also down by 3.24%. Financial experts cite a 60% decline in Rivian stocks since last month, and it seems that Amazon is currently looking at a collective loss of $4.77 billion.

The inflation rates in the United States are declared above the transitory levels without any shadow of a doubt. During the hyperinflation and recession predictions, the S&P 500 index fell around 0.4% the intraday wiped out little recovery earlier. Meanwhile, NASDAQ also experienced a collective drop of 1.5% in addition to the Dow Jones Index, which flatlined at the same time.

The investors are looking for relief in the bond yields. The Treasury Yields reported a 10-year profit and added 3 points. CPI projections issued by the Department of Labor postulated that there was a consistent price increase in everyday goods and services. For April, CPI recorded an 8.3% inflation which was the highest in comparison to the last 40 years.

COVID-19 and Inflation Attack

Omar Aguilar is the CEO of Schwab asset management; during an interview with Yahoo Finance, he recently claimed that, at present, there is a lack of inflation-related uncertainty. He further explained that the current state of the economy is badly impacted by the geopolitical dynamics of the region. He cited issues like the ongoing War on Ukraine, the financial sanctions on Russia, the international oil trade embargo, and the rising concerns around the COVID pandemic in China as the macroeconomic factors that are affecting financial markets globally.

Scott Brown, technical market strategist at LPL Finance, told Yahoo that the market is far away from rock bottom. He further explained that his example does not mean that the financial markets will dive further steeper into losses but rather that there are some examples like VIX going up by 40 points that suggest that the financial crisis can turn into a milder offense in contrast to the dire predictions by several economists.