Nasdaq 100 set to shed over $1 trillion as tech selloff deepens; SpaceX slides

US Nasdaq 100 index is poised to erase more than $1 trillion in market value on Tuesday as technology ‌heavyweights and chip stocks tumbled.
Elon Musk’s SpaceX has dropped below $2 trillion in market cap for the first time since its U.S. debut.

SpaceX, which is expected to join the Nasdaq 100, has lost more than $600 billion in market value in the past three sessions. It last had a market valuation of $1.95 trillion if the day’s losses hold.

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The company’s shares slid 3.6% to $149.1 in premarket ⁠trading, and SpaceX was only about 9% above its IPO price of $135, as a blistering post-IPO rally last week continued to lose steam.

Futures tracking the tech-heavy Nasdaq 100 index dropped 2.5%, implying a more than 700-point fall. The index will lose $1.15 trillion in market value if it drops 2.79%, according to Reuters calculations.

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Chipmakers, which have emerged as some of the biggest winners of the AI trade so far this year, also clocked heavy losses. Intel (INTC.O), opens new tab, fell 6.8% and Advanced Micro Devices was down 5.2%.

Memory chipmakers — the best-performing stocks on the S&P 500 (.SPX), opens new tab so far this year — lagged on Tuesday, with Micron Technology down ⁠8%, SanDisk falling 9.2% and Western Digital losing 7.5%. Memory chipmakers in South Korea also recorded steep declines.

Six of the seven “Magnificent Seven” group – the biggest technology stocks on Wall Street – were under pressure as investor concerns about elevated AI spending grew.

Commonly dubbed hyperscalers, these firms have committed billions to scale up their AI infrastructures, though clearer evidence that ⁠AI products can generate returns justifying the spending is yet to be seen.

Alphabet shed 2.1%, Amazon.com fell 1%, Tesla was down 3%, Nvidia lost 3%, and Apple was 0.4% lower. These companies are set to erode a combined $345 ⁠billion in market value if losses hold.

Also hitting risk sentiment were worries of future interest-rate hikes by the U.S. Federal Reserve. Traders expect the central bank to raise borrowing costs by a total ⁠of 50 basis points by December, according to the CME Group’s FedWatch Tool.

The bets have climbed from expectations of one 25-basis-point increase seen two weeks ago as investors price in hawkish monetary policy under new Fed Chair Kevin Warsh.