Nasdaq 100 set to lose over $1 trillion as tech selloff deepens

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Nasdaq 100 tech selloff loss

Highlights

Nasdaq 100 futures fall 2.5% Tuesday, implying a drop of over 700 points and a potential $1.15 trillion market value loss if it declines 2.79%.
Tech giants and chipmakers tumble as SpaceX slides 3.6% to $149.1 premarket, losing over $600 billion in three sessions, and Micron, SanDisk, and Western Digital drop 8%, 9.2%, and 7.5% respectively.
AI spending concerns and rising Fed rate hike expectations—now totaling 50 basis points by December under Chair Kevin Warsh—pressure six Magnificent Seven stocks, which could lose a combined $345 billion.

Tech stocks and chipmakers drive losses

As reported by Reuters, futures tracking the Nasdaq 100 fall 2.5% on Tuesday, implying a drop of more than 700 points for the index. Reuters calculations show the benchmark would lose about $1.15 trillion in market value if it declines 2.79%.

SpaceX, which is expected to join the Nasdaq 100, has lost more than $600 billion in market value over the past three sessions. Its shares slide 3.6% to $149.1 in premarket trading, leaving the company with a market capitalization of about $1.95 trillion if the losses hold, and only around 9% above its IPO price of $135.

Chip stocks are also under heavy pressure, with Intel down 6.8% and Advanced Micro Devices falling 5.2%. Memory chipmakers, among the strongest performers on the S&P 500 this year, lag sharply as Micron Technology drops 8%, SanDisk falls 9.2% and Western Digital loses 7.5%, while memory chipmakers in South Korea also record steep declines.

AI spending concerns and rate fears weigh on sentiment

Six of the seven Magnificent Seven technology stocks are under pressure as investors grow more cautious about elevated AI spending. Alphabet loses 2.1%, Amazon.com falls 1%, Tesla is down 3%, Nvidia drops 3% and Apple slips 0.4%, putting these companies on track to erase a combined $345 billion in market value if the losses hold.

Investor sentiment is also hit by concerns about further interest-rate increases from the U.S. Federal Reserve. According to CME Group's FedWatch Tool, traders now expect the central bank to raise borrowing costs by a total of 50 basis points by December, up from expectations two weeks ago for a single 25-basis-point increase, as markets price in a more hawkish policy stance under new Fed Chair Kevin Warsh.

Our earlier coverage of the Nasdaq-led slide in global markets noted that investors were pulling back from risk ahead of key U.S. economic data as expectations for additional Federal Reserve rate hikes firmed. It also highlighted mounting skepticism around debt-financed AI investment and stretched valuations, with pressure spreading across megacap tech, chipmakers, and newly listed SpaceX.

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