US President Donald Trump's tariff push and the mounting fears of an economic downturn triggered a sharp selloff in the US stock market on Monday by anxious investors. Elon Musk-owned Tesla saw a whopping loss of more than $125 billion in market value.
The S&P 500 closed down 8.6% from its Feb. 19 record high on Monday, losing over $4 trillion in market value. A 10% decline would mean an official correction for the index. The Nasdaq Composite index also took a hit, sliding 4% and recording its biggest one-day decline since September 2022.
As the stock market selloff worsened, the S&P 500 dropped 2.7% on Monday. This marked its biggest daily decline of the year. Notably, a report on US inflation is set to arrive on Wednesday, which could further add to the market's growing anxiety.
How The Magnificent Seven Stocks Performed On Monday
Trump's flip-flops over reciprocal tariffs have made investors extremely cautious, which led to a sharp decline for several stocks on Monday. The tech giants also took a hit amid the market turmoil, while the rising uncertainty surrounding AI chip demand, and scaling challenges worsened the situation.
Tesla, which lost over $125 billion on Monday, was down more than 15% to $222.15. This marks a 54% decline from its peak of nearly $480 on Dec. 17. Amid the selloff, Musk's net worth dropped to $301 billion, losing $29 billion in a single day.
Tech giant Apple was down 4.85% on Monday, closing at $227.48. The stock had reached an all-time peak of $259.02 on Dec. 26, 2024.
Chipmaker Nvidia lost nearly $140 billion in market value in a single day, with the stock price declining 5.07%. The stock had touched its record close of $149.43 on Jan. 6 with a market value of $3.66 trillion. Since then, it has shed over $1 trillion in value amid fears of overvaluation in the AI trade and competition from China's DeepSeek.
Meta's Mark Zuckerberg lost almost $10 billion net worth during Monday's sell-off. Meta closed down 4.42%, losing its 20-day winning streak. The stock is down more than 21% from its February high of about $740.
Meanwhile, Microsoft shares dropped 3.34%, closing at $380.16. Amazon shares were down nearly 2.3%, while Google parent Alphabet saw a 4.49% decline in its stock.
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