A widespread market correction has impacted global tech firms, erasing trillions in market value across the US, Europe, and Asia.
The Nasdaq index saw a 5.5% decline on Thursday, driven by sharp drops in share prices for companies including Nvidia, AMD, Micron, and Tesla.
This update provides an overview of the scale of the sell-off and the specific hardware and tech sectors most affected by the recent trading volatility.
In the US, the Nasdaq Composite Index fell 5,5% on Thursday, losing about $2,5 trillion in value. In a single session, the seven largest technology companies, including Apple, Nvidia and Tesla, saw their combined value fall by $1 trillion. Nvidia shares fell more than 9%, while other chipmakers such as AMD and Micron fell more than 17%. Elon Musk’s companies also fell, with SpaceX and Tesla losing 8% and nearly 11% respectively, wiping more than $300 billion off their total value.
Elon Musk had spent nearly $450 million supporting Republican candidates, including at least $45 million for Ken Paxton in Texas, who ultimately voted Democratic. In Tuesday's elections, Democrats won both the Senate and the House of Representatives.
The spread of the fall in Europe and Asia
The wave of decline extended to Europe, with German chipmaker Infineon recording losses of more than 8,5% and technology equipment company ASML falling by 6,5%.
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On Friday, the turmoil spilled over to Asian markets. Japan's Nikkei closed down 6%, with memory companies Kioxia and Tokyo Electron posting significant losses. In South Korea, SK Hynix fell more than 10% and Samsung by 6,4%, leading the Kospi to end the day down 6%.
Political reactions and concerns about technology
Texas' Democratic governor-elect, Gina Hinojosa, had campaigned against large data centers, pledging to impose a ban on new construction.
Donald Trump blamed his political opponents for the market decline in a post on the Truth Social platform. For his part, Democratic Senator Bernie Sanders called for a national moratorium on data centers in a post on X.
At a conference held in Napa, California, OpenAI President Greg Brockman and Meta President Dina Powell McCormick commented on the need for better communication and collaboration with local communities.
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