US Tech Stocks Lose $1.2 Trillion in Four-Day Selloff

US technology stocks underwent a four-day selloff that erased approximately $1.2 trillion from the sector's market value. The decline followed investor concerns regarding rising artificial intelligence spending, increased capital expenditure plans, and earnings that failed to meet expectations.

Tesla led the losses with a decline of more than 16% after missing profit expectations and warning of higher operating expenses. Alphabet Inc. shares dropped 7% after the company raised its full-year capital expenditure guidance to over $200 billion. Other major firms, including Meta Platforms Incorporated, Amazon.com, T-Mobile, and Sandisk, saw their shares fall between 7% and 10%.

Nvidia shares dropped 5%, bringing its market value to $4.77 trillion. This decline allowed Apple to reclaim its position as the world's most valuable listed company for the first time since April 2025. Market participants are now focusing on upcoming earnings reports from Amazon.com and Meta Platforms Incorporated to gauge further spending trends.