Many prices continue to fall: sell-off of tech stocks on US stock exchanges destroys trillions in value

Investors in many hyped tech stocks need to be strong these days. Concerns about inflation and doubts about the financing of the AI ​​boom are causing prices to fall sharply. But there are also massive losses in other areas.

An ongoing selloff in technology stocks is weighing on US stock markets. The Dow Jones index of standard values ​​was 0.3 percent higher at 51,755 points in the morning (local time). The broader S&P 500 lost 0.6 percent to 7,672 points. The index on the technology exchange Nasdaq, on the other hand, fell significantly by 1.4 percent to 26,309 points.

After seven days of losses in a row, the Philadelphia semiconductor index is heading for losses of more than two trillion dollars in market value. Investors are increasingly critical of the high valuations of technology stocks. The prospect of further rising interest rates also had a negative impact, as these increase companies' financing costs.

Chip manufacturer TSMC also struck a cautious tone for 2027 due to macroeconomic uncertainties, which further dampened the mood. Investors are increasingly doubting that the billion-dollar investments in the infrastructure for artificial intelligence (AI) will pay off.

The crisis of confidence hit, among other things, the shares of the loss-making AI cloud company CoreWeave, which collapsed for the second day in a row and lost seven percent. “The market is gradually becoming aware that AI demand and a profitable business model are two very different things,” said Axel Rudolph, analyst at IG Group. “If the cost of capital continues to rise, even strong demand may not be enough to protect the most indebted players.”

Shares in the agricultural chemicals group FMC fell by 34 percent after a gloomy outlook. In the third quarter, expenses of $625 million to $675 million will be incurred, which will reduce sales and adjusted operating income (Ebitda).

Rocket Lab postpones rocket launch

Shares of Rocket Lab fell 13 percent. The space company has postponed the first launch of its new Neutron launch vehicle to 2027. The reason for the postponement was defects in the carbon fiber layers of the fuel tanks, Rocket Lab said. The start was originally planned for the fourth quarter of 2026.

Analysts at TD Cowen predicted the first launch could be delayed until the second quarter of 2027 or later. Rocket Lab emphasized that they prioritize reliability over speed. The Neutron is a reusable rocket that Rocket Lab plans to use to compete for larger commercial and government contracts. Analysts at Berenberg Bank wrote in a study that the delay was expected, but was weighing on investor sentiment. However, the financial impact is small.