Apple Stock Drop Causes $300 Billion Tech Rout As Nasdaq.

Technology stocks fell Tuesday, a potentially worrying sign as 2023’s darlings shed hundreds of billions of dollars.

Key Info

The tech-heavy Nasdaq Composite lost more than 2% by late afternoon in the year’s first trading session, compared to the Dow Jones Industrial Average’s 0.2% drop and S&P 500’s 0.9% drop.
If losses maintain, Tuesday will be the Nasdaq’s worst day since October 25 and lowest closing price since mid-December.

The tech downturn was driven by Apple’s 4% stock loss, caused by an analyst downgrade questioning why the $2.9 trillion (market capitalization) company is trading at such an expensive value given its negative profits and profit growth.

The other “magnificent seven” tech stocks, which gained $5.1 trillion last year, also fell Tuesday.
After reporting greater fourth-quarter electric vehicle deliveries than expected, Tesla’s shares plummeted less than 1%, while Alphabet, Amazon, Meta, Microsoft, Nvidia, and Meta fell 1.6% or more.

Large Number

Approximately $330 billion. The majestic seven lost that much market value Tuesday.

Background key

The Nasdaq recovered most of 2022’s losses and outperformed the Dow and S&P in 2023, rising almost 40%. Tech’s gains were driven by investor optimism in generative artificial intelligence technologies’ long-term profitability, not earnings, raising questions about the rally’s health.

Surprise Fact

Apple has been the world’s most valuable corporation since late 2021, with Microsoft $100 billion behind.