The stock market took a sharp downturn on Monday, with technology stocks suffering the most. The Nasdaq 100, known for its tech-heavy composition, experienced a steep 3.8% decline. This marked its largest single-day drop since October 2022. At its lowest point during trading, the index had lost 4.7%, erasing over $1 trillion in market value.
Several factors contributed to this massive sell-off. Market uncertainty over tariffs, declining confidence in artificial intelligence spending, and weak economic data all weighed heavily on investors. The Nasdaq’s sharp decline has now pushed it into correction territory.
AI Stocks and Tech Giants Take a Hit
Tech giants, often referred to as the “Magnificent 7,” were among the hardest hit. Tesla led the decline, plummeting 15% in a single day. This marked its worst performance since September 2020. Investors are increasingly worried about Tesla’s slowing sales and CEO Elon Musk’s divided attention among his various ventures.
In an interview with Fox Business, Musk admitted managing his companies has become a challenge. His ongoing focus on the DOGE initiative has also raised concerns about his leadership priorities.
Other major tech firms saw steep losses:
- MicroStrategy: -16.7%
- Tesla: -15.4%
- AppLovin: -12%
- Microchip Technology: -10.6%
- Palantir: -10.1%
- Atlassian: -9.6%
- Dexcom: -9.2%
- CrowdStrike: -7.4%
- Arm Holdings: -7.3%
- Marvell Technology: -7.3%
Investor Anxiety Spreads Beyond Stocks
The panic wasn’t confined to equities. Investors rushed toward safer assets, pushing Treasury yields lower. The benchmark 10-year yield hovered near its lowest level of the year as investors sought stability.
Meanwhile, riskier assets like Bitcoin also suffered. The cryptocurrency dropped to nearly $77,000, its lowest level since November. Many investors fear that the market downturn could signal deeper economic trouble ahead.
The Trillion-Dollar Tech Wipeout Raises Concerns
With growing fears of a recession, investors are watching economic indicators closely. The trillion-dollar tech wipeout highlights the fragility of the current market. As AI spending slows and geopolitical uncertainties rise, analysts remain cautious about the Nasdaq’s future performance.
The trillion-dollar tech wipeout may not be over yet. If economic conditions fail to improve, more volatility could follow. For now, traders remain on edge, bracing for what comes next.
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