The week proved to be challenging for stock investors, particularly those focused on technology, as the Nasdaq experienced its most substantial weekly decline since April 2025. Significant drops were recorded among major tech companies such as Meta and Micron, but the overall sentiment was influenced by escalating concerns regarding the U.S.-Iran conflict and the resultant increase in energy prices.
The Nasdaq closed the week down 3.23%. This level of decline marks the most severe selloff for this tech-heavy index since a similar downturn following President Donald Trump’s threats of extensive tariffs, which instigated notable market panic back in April.
Notable declines were witnessed in stocks such as Alphabet, the parent company of Google, which fell nearly 9%, and Microsoft, which declined almost 7%. Both Nvidia and Amazon also posted downturns, slipping approximately 3% each, while Tesla decreased by almost 2%. Among the larger tech enterprises, Apple demonstrated relative resilience, achieving a modest gain throughout the week.
Meta experienced the most significant setback among its peers, with shares plummeting over 11% due to two major court losses that compounded the challenges facing the social media giant. These legal setbacks highlighted Meta’s ongoing difficulties in effectively managing content on its platforms, Facebook and Instagram, which are critical revenue sources as the company strives to compete with the likes of Google, OpenAI, and Anthropic in the artificial intelligence sector.
In a related shift, investors shifted away from Micron, a memory chip manufacturer that has been a standout in the market over the past year due to a supply shortage amidst skyrocketing demand for AI processors. Despite a staggering decline of more than 15% during the week, Micron's shares are still up nearly 300% year-over-year. The selloff began following Micron’s impressive second-quarter earnings report, which revealed revenues almost tripling to $23.86 billion and strong forward guidance, projecting gross margins around 80% for the upcoming quarter.
However, amidst international markets grappling with rising fuel costs and uncertainties surrounding the Middle Eastern conflict, Micron's strong performance failed to alleviate Wall Street's apprehensions.
On Friday, oil prices peaked at their highest levels in over three years, driven by concerns surrounding energy supply, particularly incidents in the Strait of Hormuz. In a post on Truth Social, President Trump indicated his pursuit of a resolution to the war in Iran, as escalating costs undermine sentiment and pose increasing challenges for Congressional Republicans in the run-up to the midterm elections.
As investors turned their backs on tech stocks this week, the industry now directs its gaze towards Elon Musk, the world's wealthiest individual, and the future of his trillion-dollar enterprises. SpaceX, having achieved a valuation of $1.25 trillion last month after merging with Musk's xAI, is anticipated to file for an initial public offering (IPO) imminently, potentially setting a record for the largest offering in history. Additionally, Tesla is scheduled to report its quarterly delivery figures next week.
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