New York, Wednesday, August 6, 2024- The seven most valuable U.S. tech companies lost a combined $1 trillion in market value at the start of trading on Monday, deepening a market downturn that has pushed the Nasdaq into correction territory. The tech-heavy index dropped more than 3% following its steepest three-week slide in two years, coinciding with a significant selloff in the cryptocurrency sector, where Bitcoin led the decline with an 11% drop.
The selloff came on the heels of last week’s release of second-quarter financial reports from several major tech firms, including Amazon, Alphabet, and Microsoft.
Nvidia, a leading beneficiary of the artificial intelligence boom, saw its market cap plunge by more than $300 billion at the opening bell, though it quickly recovered about half of its value. The chipmaker’s shares ended the day down 6.4%, translating to a $168 billion loss. Apple and Amazon also suffered significant valuation declines, with Apple losing $224 billion at market open and closing down 4.8%, while Amazon shed 4.1%, equating to a $72 billion loss.
Meta, Microsoft, Alphabet, and Tesla also faced steep losses, contributing to the nearly $1 trillion market cap wipeout. While some recovery occurred throughout the day, the overall decline in these tech giants’ values underscored the market’s broader concerns.
Investors’ growing caution is also reflected in the Nasdaq’s recent performance.
Last week, the index slumped 3.4%, marking its worst three-week stretch in two years. The broader market decline on Monday was further fueled by fears of a potential recession, following disappointing economic data.
Nvidia is set to report its earnings later this month, with investors closely watching to see if the company can sustain its remarkable revenue growth, which has exceeded 200% for the past three quarters.
