The M7 Big Tech stocks, which had been driving the New York stock market’s upward trend for the past two years, plummeted on Monday.
Tesla’s decline intensified as the day progressed, reaching 13% by 1:38 PM Eastern Time.
While Meta Platforms saw a 1.6% year-over-year gain after a continuous 20-day rise, Tesla and the other five M7 stocks ended in negative territory.
Tesla’s stock price has been hit particularly hard, dropping by nearly 43% for the year.
Semiconductor stocks also significantly declined, and bank shares plummeted amid growing concerns about a potential U.S. recession.
Tesla’s 13% Nosedive
Tesla’s stock price plummeted due to investor anxiety over CEO Elon Musk’s political activities and mounting concerns about slowing demand.
Tesla’s shares plunged $35.17 (13.39%) to $227.50, bringing its total decline for the year to over 42.9%.
Reports of falling Tesla sales in key markets like China, Europe, and the U.S. have compounded the problem. Musk’s right-wing political actions have also increased dissatisfaction among Tesla’s core progressive consumers.
Despite being a major beneficiary of a potential second Trump administration, Tesla’s stock has fallen for seven consecutive weeks since Trump’s inauguration on January 20.
Other M7 stocks also suffered significant losses, dropping around 5%.
Nvidia, the AI semiconductor market leader, fell $5.83 (5.17%) to $106.86, while Apple, the largest company by market cap, dropped $13.84 (5.78%) to $225.23.
Alphabet declined $9.24 (5.32%) to $164.42, and Meta Platforms slid $35.12 (5.61%) to $590.53.
Microsoft and Amazon fared slightly better, with losses in the 3% range.
Microsoft fell $13.68 (3.47%) to $379.63, while Amazon dropped $6.46 (3.24%) to $192.79.
The Roundhill M7 ETF (MAGS), which tracks the M7 stocks, tumbled $2.74 (5.60%) to $46.12, bringing its year-to-date losses to 15%.
Semiconductors Crash
Semiconductor stocks also saw declines.
Broadcom, a custom AI semiconductor company, plunged $14.09 (7.28%) to $180.76, while Taiwan’s TSMC fell $8.30 (4.68%) to $168.80.
Intel Corporation dropped $0.82 (3.97%) to $19.82, and AMD declined $2.74 (2.73%) to $97.57.
UK-based chip designer ARM Holdings saw its shares fall $9.54 (7.60%) to $116.00, while AI memory semiconductor company Micron slid $5.96 (6.42%) to $87.00.
Banks Fall Amid Recession Fears
Bank stocks also took a hit in the market downturn.
Growing concerns about a U.S. economic slowdown and potential recession have stoked fears of weakening bank earnings and a sharp increase in bad loans.
JPMorgan Chase, the largest U.S. bank, fell $11.97 (4.94%) to $230.31, while Goldman Sachs Group, Inc. dropped $33.12 (5.91%) to $526.54.
Citigroup declined $3.70 (5.26%) to $66.75, and Wells Fargo slumped $4.92 (6.92%) to $66.13.
