The Nasdaq 100 fell 3.8% on Monday, marking its biggest decline since October 2022. The sell-off hit tech stocks particularly hard, with the so-called Magnificent 7 cohort experiencing significant losses. The Nasdaq’s decline alone wiped out more than $1 trillion in market value at its lows.
US stocks had a challenging day overall, but no sector felt the impact more than technology. The tech-heavy Nasdaq 100 saw deep losses, plummeting 3.8%, its most substantial single-day drop since October 2022. At intraday lows, the index was down nearly 4.7%, erasing over $1 trillion in market value.
A range of factors contributed to the Nasdaq’s downturn, pushing it into correction territory from a mid-February high. These included tariff-related uncertainties, declining confidence in AI spending, and disappointing data on inflation and labor. Investors are increasingly anxious about a potential recession in the US, especially after President Donald Trump did not rule out the possibility during a recent interview.
The Magnificent 7 stocks—popular AI names pivotal to the recent bull market—were particularly hard-hit on Monday. Tesla led the decline, dropping 15%, its steepest one-day fall since September 2020. The automaker faces heightened scrutiny due to decreasing sales and concerns over CEO Elon Musk‘s focus on the company amidst his various ventures.
In an interview with Fox Business on Monday afternoon, Musk mentioned he is managing his numerous responsibilities with “great difficulty” while also overseeing his DOGE initiative.
Here are the 10 worst performers in the Nasdaq 100 on Monday:
- MicroStrategy: -16.7%
- Tesla: -15.4%
- AppLovin: -12%
- Microchip Technology: -10.6%
- Palantir: -10.1%
- Atlassian: -9.6%
- Dexcom: -9.2%
- Crowdstrike: -7.4%
- Arm Holdings: -7.3%
- Marvell Technology: -7.3%
The market’s anxiety extended beyond equities. With investors increasingly worried about a downturn, Treasury yields fell. The benchmark 10-year rate hovered near its lowest level of the year, indicating a flight to safety.
Conversely, other risk assets faced continued outflows. Bitcoin, the leading cryptocurrency, dropped to nearly $77,000, marking the lowest price point since November.
