The selloff in US technology stocks continued for the fourth consecutive trading session, resulting in a loss of approximately $1.2 trillion from the sector’s market value. Tesla led the decline, dropping over 16% in the past four trading sessions, along with companies like Sandisk, T-Mobile, Meta Platforms, Alphabet, and Amazon, which fell between 7% and 10% during the same period.
Investors expressed concerns over increasing AI spending, below-par earnings, and higher capital expenditure plans by major companies. This downward trend in the tech sector also affected Nvidia, allowing Apple to regain its position as the world’s most valuable listed company for the first time since April 2025.
Following disappointing results from Alphabet and Tesla, the market saw a further decline. Alphabet’s shares fell by 7% after the company raised its full-year capital expenditure guidance to over $200 billion. Tesla also experienced a drop of nearly 15% due to lower-than-expected profits and a warning of increased operating expenses.
As major global technology companies gear up for a crucial week of earnings, investors are closely watching spending plans from Meta Platforms and Amazon, which could significantly impact the direction of technology shares in the upcoming weeks. Reports suggest that Alphabet, Microsoft, Amazon, and Meta are projected to allocate around $724 billion towards capital expenditure this year and nearly $950 billion by 2027.
