Apple, Nvidia lead sell-off in tech stocks; magnificent seven set to wipe out nearly $900 bn

Apple and Nvidia led a sell-off in tech stocks on Monday on US recession worries and Berkshire Hathaway’s stake sale in the iPhone maker.

The magnificent seven - Alphabet, Amazon , Meta Platforms, Microsoft, Tesla, Apple, and Nvidia fell as much as 6.5%.

The losses in these seven stocks were set to wipe out nearly $900 billion from the combined market value of the seven companies.

The sharp sell-off in the US stock markets followed a weak jobs data on Friday that triggered economic recession fears across the global markets.

The Bloomberg Magnificent 7 Index plunged the most since 2015 amid a rout in Big Tech.

Last week, Warren Buffett's Berkshire Hathaway said it had halved its stake in Apple in the second quarter.

At 1:29 pm EDT, Apple stock was at $210.82, $9.04 or 4.11%.

In tech sector, another disappointing report came on AI supply chain that also hurt the investors’ sentiments.

According to a report, Nvidia’s highly anticipated Blackwell chips will be delayed due to design flaws.

The chips may be postponed by three months or more, which could potentially hit big tech firms from Meta to Microsoft, the Information reported.

At 1:29 pm EDT, Nvidia stock was at $101.01, down $6.26 or 5.84%.

Chip stocks also plunged, with the Philadelphia Semiconductor Index falling nearly 3%.

Shares of Advanced Micro Devices , Intel, Super Micro Computer and Broadcom slipped as much as 7.8%.

Wall Street

The Nasdaq 100 Index posted its biggest intraday drop in nearly two years as investors braced for days of volatility.

At 11:30 a.m. ET, the Dow Jones Industrial Average was down 863.70 points, or 2.17%, at 38,873.56, the S&P 500 was down 129.55 points, or 2.42%, at 5,217.01, and the Nasdaq Composite was down 465.25 points, or 2.77%, at 16,310.92.

US Treasury yields also tumbled to their lowest in a year and a closely watched gap between two- and 10-year Treasury notes turned positive for the first time since July 2022.