TLDR
- “Magnificent Seven” tech stocks led a major market sell-off, with Tesla dropping 15%
- The Nasdaq fell 4% in its worst day since 2022, while the S&P 500 and Dow experienced their worst day of 2025
- Nvidia has lost $1 trillion from its record highs, while Tesla has lost 50% from its December peak
- President Trump acknowledged economic concerns, describing the economy as in “a period of transition”
- Investors await inflation data on Wednesday which could impact Federal Reserve policy decisions
The US stock market suffered a major blow on Monday, March 10, 2025, as the so-called “Magnificent Seven” tech stocks led a widespread sell-off. The tech-heavy Nasdaq Composite fell 4% in its worst single-day decline since September 2022.
Tesla was hit hardest among the tech giants, plunging 15% and erasing all gains made following President Trump’s election victory. The electric vehicle maker has now lost 50% of its value since reaching record highs in December.
Nvidia continued its downward trend, contributing to a $1 trillion loss from its record peaks last year. The AI chip maker fell more than 5% during Monday’s trading session, reflecting growing concerns about tech valuations.
Other tech giants weren’t spared in the market rout. Apple dropped 4.85%, while Google parent Alphabet tumbled 4.41%. Meta also saw a decline of over 4% during the session.
Microsoft and Amazon fared slightly better than their peers. Microsoft fell 3.34%, while Amazon experienced the smallest decline among the group at 2.36%.
The broader markets also took a beating. The Dow Jones Industrial Average dropped nearly 900 points, representing a decline of over 2%. This marked the worst day of the year for the blue-chip index.
The S&P 500 fell 2.7%, bringing it within 2% of entering correction territory. The index is now trading at its lowest level since September 12, 2024, and experienced its worst day of 2025.
Monday’s sell-off followed what was already the worst week of the year for US markets. The Nasdaq had officially entered correction territory last Thursday, defined as a 10% decline from recent highs.
Market analysts have pointed to several factors driving the downturn. RBC’s equity strategy team noted that “investor, corporate, and political vibes have continued to weaken,” while Morgan Stanley strategist Mike Wilson projected the S&P 500 could fall another 5%.
President Trump addressed economic concerns during a Sunday interview on Fox News. He described the economy as undergoing “a period of transition” and did not rule out the possibility of a recession this year.
This marks a shift from Trump’s first term, when he frequently referenced stock market performance as a measure of his administration’s economic success. Last Thursday, he told reporters, “I’m not even looking at the stock market.”
Trade tensions may be contributing to market uncertainty. Tariff negotiations between the US, Mexico, and Canada have dominated recent headlines as part of Trump’s renewed focus on trade policy.
Investors are closely watching upcoming economic data that could influence Federal Reserve policy. The February Consumer Price Index will be released on Wednesday, potentially providing insights into inflation trends.
Job openings data expected on Tuesday may offer additional perspective on labor market conditions. Friday’s jobs report had suggested the employment situation was more stable than some had feared.
Bank of America strategists have warned about the risk of a post-election “bro bubble” popping. They suggested that if the S&P 500 erases its post-election gains, investors might expect verbal support for markets from policymakers.
As Moody’s economist Mark Zandi told Yahoo Finance last week: “There’s a lot of clouds out there, some storms, things are getting pretty dark.”
