A stock market selloff slashed the share price of nearly every publicly traded music company’s share price on Monday (May 9).
iHeartMedia fell 12.4% to $12.27 after JP Morgan downgraded the U.S. broadcaster’s stock to neutral from overweight. MSG Entertainment shares slipped 10.1% following the company’s first-quarter earnings report. Spotify closed down 9.8% to $94.44 after reaching a new all-time low of $93.52 before the closing bell.
Music wasn’t alone. Many high-profile tech companies suffered steep declines on Monday as well: Palantir, co-founded by famed investor Peter Thiel, dropped 21.3% after the company reported weaker-than-expected first quarter numbers. Shares of Tesla fell 9.1%, while its rival Rivian fell 20.9% to a new 52-week low after Ford sold 8 million shares — about 8% of its total stake.
As well, cryptocurrencies continued their downward slide, with Bitcoin and Ethereum falling 9% and 9.5%, respectively. Cryptocurrency exchange Coinbase fell 19.5% and currently sits almost 80% below its November high.
Hanging over the market is uncertainty about the Federal Reserve is raising interest rates and reducing its balance sheet in an effort to ward off the worst inflation in four decades. Amidst continued lockdowns in China and fighting in Ukraine, warnings about a possible U.S. downturn grew louder on Monday. “The ingredients for a global recession are on the table,” Morgan Stanley economists wrote in a note to investors on Monday.