Nasdaq 100 sheds $1.1 trillion in value as tech meltdown spreads

Technology shares suffered their biggest one-day plunge since 2022, as investors ditched longtime market leaders on rising worries the economy is headed for a recession, Report informs via Bloomberg.

The Nasdaq 100 Index plunged 3.8% with Monday’s selling wiping out more than $1 trillion in value. Meanwhile, the Bloomberg Magnificent 7 Index — an equal-weighted gauge of the biggest US tech stocks — tumbled 5.4% to bring its rout from a December record to more than 20%. Tesla Inc. tumbled 15%, widening its loss this year to 45%, while Nvidia Corp. lost 5.1% and has erased more than $1 trillion in market value in two months.

The tech wreckage comes after a weekend that saw Trump administration officials and President Donald Trump himself suggest that the American economy is set to slow. The change in language from the campaign trail, when Trump promised tariffs on Day One that would pay for tax cuts without disrupting the growth, has sparked a frenzied repricing of risk assets.

“Sell your winners, embrace the bear case and duck and cover,” said Michael Bailey, director of research at Fulton Breakefield Broenniman.

By virtually any accounting, the winners until recently had been megacap tech. Nvidia, Microsoft, and Apple soared to valuations north of $3 trillion, Amazon and Alphabet weren’t far behind. Even Tesla saw its market worth top $1 trillion.