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Tech Meltdown Wipes Out $1.1 Trillion from Nasdaq 100 Market Value

Mellissa · 11 Mar1.6K Views

Image Cedit: Bloomberg

Technology stocks experienced their largest one-day drop since 2022, as investors pulled back on concerns that the economy might be heading toward a recession. The Nasdaq 100 Index plummeted 3.8%, erasing more than $1 trillion in market value.

The Bloomberg Magnificent 7 Index, which tracks the largest U.S. tech stocks, fell 5.4%, bringing its losses from a December peak to over 20%. Tesla dropped 15%, extending its 2025 loss to 45%, while Nvidia lost 5.1%, wiping out over $1 trillion in market value in just two months.

The tech sell-off follows comments over the weekend from Trump administration officials and President Trump himself, suggesting that the U.S. economy could slow down. This shift in rhetoric has led to a dramatic repricing of risk assets, with investors moving away from high-growth sectors.

“Sell your winners, embrace the bear case and duck and cover,” said Michael Bailey, director of research at Fulton Breakefield Broenniman. For months, Wall Street had been shifting focus from tech stocks to more defensive sectors as concerns about trade policies and persistent inflation grew. This shift gained momentum on Monday after the weekend's unsettling comments about economic growth.

The selloff has been particularly severe in the more speculative areas of the market. A group of unprofitable tech companies dropped 6.6% on Monday and is now down 23% for the year, heading for its worst quarter since 2022.

When asked about the potential for a recession this year, Trump responded, “I hate to predict things like that. There is a period of transition, because what we’re doing is very big.” Treasury Secretary Scott Bessent also discussed a "detox period" as the U.S. reduces public spending.

With the exception of Meta, all the stocks in the Magnificent 7 are in negative territory for the year, with Nvidia down by double digits and Tesla having lost nearly $600 billion in value so far in 2025.

“These stocks were all priced for perfection,” said James Abate, chief investment officer at Centre Asset Management. “Clearly, we’re seeing a market that’s de-risking.”