Tech Sell-Off Wipes $850 Billion; Tesla Slides 2% in Weekly Decline
Magnificent Seven tech stocks lost over $850 billion in market value last week as rising inflation fears drove interest rate expectations higher. Tesla shares fell nearly 2% over the five-day span, underperforming only modestly compared with Meta’s 11% plunge and Alphabet’s 9% drop.
1. Sector-Wide Value Erosion
Over the past week the seven largest US tech companies collectively erased more than $850 billion in market capitalization as bond yields spiked on inflation concerns, pushing growth stocks sharply lower.
2. Tesla’s Weekly Performance
Tesla shares dropped nearly 2% from Monday’s open through Friday’s close, marking one of its weaker weekly showings among the group despite smaller losses than Meta and Alphabet.
3. Decline Drivers
The sell-off was triggered by investor fears that persistent inflation will force the Federal Reserve to keep rates higher for longer, compounded by Alphabet’s release of an AI memory algorithm that rattled semiconductor and broader tech stocks.