And the S&P 500 recorded its worst day since September 2022 on Monday, falling by 3%Monday’s sell-off is the latest in a series of bad days for markets. Stocks have fallen several times in recent weeks on concerns about a US economy weakened and overvalued technology stocks.
Collectively, G7 Techno has lost nearly $3 trillion in market capitalization since early July, when most of the group was trading at all-time highs.
Nvidia
The Nvidia shares (NVDA) faced particular pressure on Monday over reports that its Blackwell system, which includes next-generation artificial intelligence (AI) chips, could be delayed by three months or more, according to The InformationDesign flaws are a factor driving the delay, the report said, citing anonymous sources close to the company.
Nvidia shares fell 6.4% on Monday, putting them more than 25% below their recent highs. The drop wiped out about $845 billion from the stock’s market capitalization.
Microsoft
Microsoft (MSFT) fared a bit better than most of its peers on Monday, falling 3.3%. Still, the stock has been hit in recent weeks by concerns about rising AI spending. Additionally, Microsoft last week reported cloud revenue of $36.8 billion, below the $37.2 billion that analysts had anticipated.
Since hitting an all-time high of $467.56 on July 5, the firm’s shares have fallen more than 15%, wiping $540 billion off its market capitalization.
Alphabet
Alphabet (GOOGL; GOOG) helped spark one of the biggest tech sell-offs this year when it reported that spending on AI infrastructure had risen in the second quarter and would remain elevated through 2025. Unlike Microsoft, though, Google’s cloud revenue of $10.35 billion beat analysts’ expectations.
Shares fell 4.5% on Monday amid a sell-off and following a federal judge’s ruling that Google violated U.S. antitrust law by paying billions of dollars to make its search engine the default on smartphones. The company’s market capitalization has declined more than $377 billion since July 10.
Manzana
Apple (AAPL) opened nearly 10% lower on Monday after Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) revealed over the weekend that it had reduced its stake in the company by nearly 50% in the second quarter. Berkshire reduced its holdings in Apple by 13% in the previous quarter.
Apple shares recovered to close down 4.8%. Still, the iPhone maker’s market capitalization has fallen more than $390 billion in the past three weeks.
Amazon
Amazon (AMZN) shares fell nearly 9% last Friday after the company missed quarterly revenue estimates and issued weak guidance. That overshadowed a 19% increase in Amazon Web Services cloud revenue, growth that is expected to continue as demand for its AI services increases.
Amazon shares were also dragged down in Monday’s sell-off, falling 4.1%. The company’s market capitalization has declined about $410 billion from its recent high.
Goal
Meta Platforms (META) was a rare bright spot among the Magnificent Seven this earnings season. Its shares rose the day after it reported better than expected earnings and detail how its investments in AI are paying off.
“We had a strong quarter, and Meta AI is on track to be the most used AI assistant in the world by the end of the year,” said CEO Mark Zuckerberg.
Shares fell 2.5% on Monday, the smallest decline of any stock in the Magnificent Seven. But its market capitalization is still down $165 billion from its peak in early July.
Tesla
Tesla (TSLA) is coming off a disappointing second-quarter earnings report that revealed profits fell 45% as costs for AI projects rose and the average selling price of its vehicles declined.
Shares of the electric vehicle maker fell 4.2% on Monday, bringing its total market capitalization loss from its recent peak to more than $200 billion.
Earnings reports highlight spending on AI and chips
The pullback in tech stocks also comes amid a broader market shift ahead of key Federal Reserve interest rate decisions that could benefit small-cap stocks.
While the central bank is not expected to cut rates anytime soon, expectations that the Fed will cut rates in September have fueled hopes that small-cap stocks could get a boost after lagging the performance of big tech companies so far this year.
However, analysts at CFRA, Wedbush, Bank of America and UBS suggested earlier this month that the recent pullback in tech stocks could be temporary, citing strong fundamentals and rising demand for AI productspotentially offering long-term investors an opportunity to “buy the dip.”
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
