Key points:
- The Nasdaq Composite dropped 2% as investors moved out of tech stocks.
- Tech giants lost over $600 billion in market value.
The Nasdaq Composite (Symbol: NAS100) faced a significant setback, ending its record-setting streak with a 2% decline. This drop was primarily driven by the retreat from tech stocks following the latest inflation data.
The report indicated easing price pressures, prompting big players to unwind their bullish positions in the tech sector and redirect their capital. This move caused the Nasdaq to suffer its biggest single-day loss since February 2022.
Picture: Nasdaq Composite faced its biggest single day decline, as observed on the VT Markets app.
Impact on the tech giants
Tech giants experienced a massive sell-off, collectively losing over $600 billion in market capitalization. Nvidia (Symbol: NVIDIA) led the decline with a 5.6% drop, followed by Meta (Symbol: META), which fell 4.1%.
Tesla (Symbol: TSLA) was the worst performer, plunging 8.4% and ending its 11-day winning streak. This sharp decline was influenced by the disappointing news of delays in the robotaxi project by Tesla.
Next market moves to observe
The broader implications of inflation data and Federal Reserve policy remain uncertain. The upcoming testimony from Fed Chair Jerome Powell and further economic data releases, such as the CPI report, will provide more insights into the central bank’s stance on interest rates and inflation.
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