Nasdaq 100 Plunges 3.8%, Wiping Out $1 Trillion in Market Value

Tech Stocks Take a Beating as Nasdaq 100 Plunges

The tech-heavy Nasdaq 100 experienced a brutal sell-off on Monday, plummeting 3.8% – its biggest single-day drop since October 2022. This dramatic decline wiped out over $1 trillion in market value at its lowest point.

Several factors contributed to this tech rout. Concerns about a potential recession in the US, fueled by President Trump's recent comments, have rattled investors. Additionally, the "Magnificent 7" – a group of popular AI stocks that have driven the recent bull market – were particularly hard hit. Tesla, the poster child of this group, plunged 15%, its worst single-day performance since September 2020. CEO Elon Musk cited the challenges of juggling his various business ventures, including his DOGE initiative, as a contributing factor.

The broader market also felt the sting of the sell-off. The benchmark 10-year Treasury yield dipped to its lowest level this year, reflecting investors' flight to safety. Meanwhile, risk assets like Bitcoin continued to suffer, with the cryptocurrency falling to its lowest price since November.

This tumultuous day on Wall Street underscores the growing anxiety surrounding the tech sector and the broader economy. With recession fears looming and key tech players facing headwinds, the market's future trajectory remains uncertain.