A Reuters report showed the Nasdaq 100 index was on pace to erase more than $1 trillion in market value on Tuesday amid a broad tech selloff, while SpaceX also saw its valuation decline. This comes as the stocks of tech companies went down and SpaceX dropped to $2 trillion for the first time since its IPO.
SpaceX, which is expected to join the Nasdaq 100, has lost more than $600 billion in market value in the past three sessions. It last had a market valuation of $1.95 trillion, if the day’s losses hold.
The report mentioned that SpaceX’s shares went down by 3.6% to $149.1 in premarket trading. The company was only about 9% above its IPO price of $135 as last week’s post-IPO rally began losing steam.
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Previous reports mentioned that SpaceX’s shares had fallen since its IPO debut in a pattern similar to that of mega-IPOs. Large, highly-anticipated IPOs reportedly often tend to find it difficult to exceed expectations. Mega-IPOs over $50 billion have historically delivered a median one-year return of -31.9%.
The Reuters report also mentioned that chipmakers also faced severe losses after emerging as the biggest winners of the AI trade so far this year. Intel fell 6.8% and Advanced Micro Devices was down 5.2%. Memory chipmakers such as Micron, SanDisk, and Western Digital, which have been among the best-performing stocks on the S&P 500 this year, also saw declines, along with South Korean chipmakers.
READ: Elon Musk becomes world’s first trillionaire following SpaceX IPO (June 12, 2026)
Six of the seven “Magnificent Seven” group — the biggest technology stocks on Wall Street — were under pressure, amid widespread investor concern over AI spending. These firms have committed billions to scale up their AI infrastructures despite a lack of clear evidence about AI products generating returns that justify the spending.
“The AI beneficiaries are the sell-off, and I don’t think they’re expensive, but they’re crowded,” said Andrew Slimmon, a senior portfolio manager at Morgan Stanley Investment Management, on CNBC’s “Squawk Box” Monday. “It’s captured kind-of the zeitgeist of the momentum traders and when that happens, you’re going to have sharp sell offs like we’re having. I’d argue it’s healthy.”
Alphabet shed 2.1%, Amazon.com fell 1%, Tesla was down 3%, Nvidia lost 3% and Apple was 0.4% lower. These companies are set to shed a combined $345 billion in market value, if losses hold.