Advertisement
Canada markets closed
  • S&P/TSX

    24,471.17
    +168.87 (+0.69%)
     
  • S&P 500

    5,815.03
    +34.98 (+0.61%)
     
  • DOW

    42,863.86
    +409.76 (+0.97%)
     
  • CAD/USD

    0.7254
    -0.0016 (-0.22%)
     
  • CRUDE OIL

    74.53
    -1.03 (-1.36%)
     
  • Bitcoin CAD

    89,003.34
    +2,318.66 (+2.67%)
     
  • XRP CAD

    0.74
    +0.00 (+0.10%)
     
  • GOLD FUTURES

    2,677.20
    +0.90 (+0.03%)
     
  • RUSSELL 2000

    2,234.41
    +45.99 (+2.10%)
     
  • 10-Yr Bond

    4.0730
    -0.0230 (-0.56%)
     
  • NASDAQ

    18,342.94
    +60.94 (+0.33%)
     
  • VOLATILITY

    20.64
    +0.18 (+0.88%)
     
  • FTSE

    8,258.28
    +4.63 (+0.06%)
     
  • NIKKEI 225

    39,605.80
    +224.90 (+0.57%)
     
  • CAD/EUR

    0.6634
    -0.0008 (-0.12%)
     

Nvidia stock tanks as 'Mag 7' stocks lose more than $650 billion in market cap

On Tuesday, markets regained some stability following Monday's sharp sell-off, which marked the end of a three-week, $6.4 trillion retreat in global equities.

Nvidia (NVDA) rebounded in premarket trading on Tuesday, rising over 2%. Tesla (TSLA) also saw a recovery, climbing after a 4% drop the previous day.

Despite these gains, Nvidia stock fell more than 6% on Monday as the "Mag Seven" stocks suffered a valuation wipeout of more than $650 billion during Monday's market plunge.

The iconic group has lost roughly $1.3 trillion in market cap over the past three trading sessions.

Fellow Magnificent stock Alphabet (GOOGL, GOOG) slid 4% while Meta (META) fell more than 2%.

Ecommerce giant Amazon (AMZN) and software maker Microsoft (MSFT) also slid.

Apart from the broad market sell-off, individual company news also put pressure on the Mag Seven stocks.

On Monday a judge found Alphabet's Google search and ad businesses violated antitrust laws, sending shares of the tech giant lower during the session.

Apple (AAPL) dropped more than 4% after Berkshire Hathaway (BRK-B) revealed over the weekend it had cut half of its stake in the iPhone maker.

Nvidia fell as much as 13% at the market open to pare some of its losses. Analysts noted recent negative catalysts weighing on the AI chip heavyweight.

The Information reported the company's upcoming next-generation AI chips would be delayed by three months, potentially impacting its biggest customers like Microsoft, Alphabet, and Meta.

"Nvidia has a window to sell to Microsoft, Amazon, Google, and Meta while those companies are hot and bothered about building out data centers as quickly as they can. That window will shut at some point," Gil Luria, D.A. Davidson senior software analyst, told Yahoo Finance on Monday.

"If Nvidia is missing out on some of those sales during that window, that does have an impact on Nvidia's value," said the analyst.

Monday's action follows a recent heavy sell-off on Wall Street as chip stocks have gotten hammered over the past week.

Nvidia stock tumbled more than 5% Monday amid a broader market selloff. (AP Photo/Jeff Chiu, File)
Nvidia stock tumbled more than 5% Monday amid a broader market selloff. (AP Photo/Jeff Chiu, File) (ASSOCIATED PRESS)

On Friday Nvidia closed off the lows of the session, down only 1.8%, while Intel (INTC) shares cratered over 26% following a disastrous second quarter earnings report and a broad decline in chip stocks led the tech sector lower.

After the July jobs report, which showed job growth slowed last month and the unemployment rate reached a nearly three-year high, the Nasdaq Composite (^IXIC) slipped into correction territory, defined as a 10% drop from its most recent high.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

StockStory aims to help individual investors beat the market.
StockStory aims to help individual investors beat the market.