Tech stocks faced significant turbulence last week, with the Nasdaq experiencing its worst weekly decline since April 2025, dropping 3.23%. Major players like Meta and Micron saw double-digit losses, driven by rising energy prices amid escalating U.S.-Iran tensions. Meta’s stock plummeted over 11% following two legal setbacks, while Micron’s shares fell more than 15%, despite a strong earnings report that highlighted robust demand for AI processors.
The broader implications for the tech sector are concerning, as this selloff reflects investor anxiety over geopolitical risks and inflationary pressures. While companies like Apple managed to hold steady, the declines in giants like Alphabet and Microsoft signal a potential shift in market sentiment. The spike in oil prices, reaching a three-year high, adds to the uncertainty, complicating the outlook for tech firms that rely on stable economic conditions.
As investors reassess their positions, all eyes will be on upcoming earnings reports, particularly from Tesla, which may offer insights into consumer demand amid these challenging conditions.
Source: cnbc.com