The Nasdaq 100 — a stock index that measures the overall health of the global tech sector — was on track to lose more than $1 trillion in market value today as tech giants and chipmakers tumbled. Elon Musk's SpaceX also fell below $2 trillion in market capitalization for the first time since its U.S. debut.
SpaceX, which is expected to join the Nasdaq 100 index, has lost more than $600 billion in market value in the past three days. If today's losses hold, its market valuation would be $1.95 trillion, Reuters reported .
Even before the official opening of trading, the company's shares fell by 3.6% and became worth $149.1 per share. Last week, immediately after the company entered the market, its shares grew wildly, but now this growth has slowed down. As a result, the current price is only 9% higher than the initial price ($135) with which the company was launched.
Futures for the Nasdaq 100 technology index fell 2.5%, a drop of more than 700 points. According to Reuters calculations, if the index falls 2.79%, it will lose $1.15 trillion in market value.
Chipmakers, which have been among the biggest winners from this year's AI boom, also suffered heavy losses. Intel shares fell 6.8% and Advanced Micro Devices (AMD) fell 5.2%.
Memory chip makers, which have been the best performers in the S&P 500 so far this year, were among the underdogs on Tuesday, with Micron Technology down 8%, SanDisk down 9.2% and Western Digital down 7.5%. South Korean memory chip makers also saw sharp declines.
Six of the seven companies in the "Magnificent Seven" group — the largest technology stocks on Wall Street — have come under pressure as investors grow concerned about excessive spending on artificial intelligence.
Alphabet shares fell 2.1%, Amazon.com fell 1%, Tesla fell 3%, Nvidia lost 3% and Apple fell 0.4%. These companies are expected to lose a combined $345 billion in market value if the losses continue.
