Wall Street returned from a long weekend with a negative sentiment towards tech stocks, as evidenced by the Nasdaq Composite's 1.32% drop to 26,166.60. Investors shifted away from the 'Magnificent Seven' tech stocks, with Amazon falling nearly 5% and Meta Platforms down 2%.
Alphabet's shares dropped 5%, marking their worst daily performance in over a year, amid concerns about talent leaving for competitors. SpaceX was particularly hard hit, with a 16% decline, resulting in significant losses for investors who bought shares after its market debut.
This downturn has also affected Asia-Pacific markets, with South Korea's Kospi dropping over 8% and Japan's Nikkei also declining. In geopolitical developments, the U.S. Treasury has issued a 60-day license for oil production and sales from Iran, raising concerns about potential military funding.
Additionally, the U.K. marks the 10-year anniversary of the Brexit vote amidst political upheaval following Prime Minister Keir Starmer's resignation. In the startup world, Indian fintech company Cred has secured $900 million in funding led by Meta, although it has lost its founder to WhatsApp, highlighting the dynamic nature of the tech investment landscape