A major technology sector sell-off on Wall Street triggered a wave of declines across global markets, with the Nasdaq Composite falling 1.32% to close at 26,166.60 on Monday [1]. The downturn was led by significant losses in high-profile tech stocks: Amazon dropped nearly 5%, Meta Platforms fell 2%, and Alphabet shares slipped 5%, marking their worst daily performance in over a year due to concerns over a 'brain drain' following the departure of two prominent AI researchers [1].
SpaceX emerged as the biggest loser, with its stock slumping 16% on Monday, marking its third consecutive day of losses since its recent Nasdaq listing. The average investor who bought SpaceX shares after its debut has seen nearly all gains erased by the end of last week due to the ongoing pullback [1].
The sell-off's impact was felt globally, as Asia-Pacific markets mirrored the negative sentiment from Wall Street. South Korea's Kospi plunged over 8%, triggering circuit breakers, while Japan's Nikkei also traded lower [1]. The broad-based rotation out of the 'Magnificent Seven' tech names underscores investor caution and uncertainty about whether this marks the start of a deeper correction or presents a buying opportunity [1].
In other developments, the U.S. Treasury issued a 60-day license authorizing the production, delivery, and sale of oil from Iran. When questioned about the potential for Iran to use oil profits to rebuild its military, President Donald Trump responded, 'we'll see,' indicating uncertainty about the enforcement of restrictions [1].
Additionally, the U.K. marked the 10-year anniversary of the Brexit vote amid fresh political upheaval, following Prime Minister Keir Starmer's resignation and the emergence of Andy Burnham as a leadership contender [1].
CONCLUSION
The tech-led sell-off has triggered significant volatility across global markets, with SpaceX and major tech stocks experiencing sharp declines. Investor sentiment remains cautious as uncertainty persists about the sector's near-term direction. The market is closely watching for signs of stabilization or further correction in the days ahead.