US largest stock exchange loses $1.75 trillion in 2 days: Tech stocks crash

Compiled by: Suat TEKİN - 12punto.com.tr

Following the decline in tech stocks caused by the Chinese artificial intelligence DeepSeek in mid-February, it was reported that panic selling occurred on US stock exchanges for the second time in 2 months. While the Nasdaq 100 index lost $1.75 trillion in value over 2 days, the Bloomberg Magnificent 7 Index saw a 5.4% drop. Tesla, the company of US billionaire Elon Musk, fell 15%, bringing its total decline in 2025 to 45%, while Nvidia lost $1 trillion in value within two months with a 5.1% loss.

Experts pointed out that the meltdown in tech stocks accelerated on Monday following statements by US President Donald Trump and some officials regarding a potential economic slowdown. Trump's campaign promise to finance tax cuts in domestic markets through additional import tariffs has led to a repricing of risky assets in the markets.

According to Bloomberg, technology companies have made huge gains on the stock market in recent years. In 2024, the market value of Nvidia, Microsoft, and Apple exceeded $3 trillion, while Amazon and Alphabet also approached this level. Tesla once reached a market value of $1 trillion.

On the other hand, the new model R1 released by the Chinese artificial intelligence company DeepSeek caused a meltdown in the shares of US companies in mid-February. US tech giants have suffered value losses ranging from 4% to 25% since March 10. Economists warned that panic selling could increase following the inflation data to be released today.

'BEAR MARKET' SCENARIO

Fulton Breakefield Broenniman Research Director Michael Bailey stated that investors have begun to offload their shares in recent weeks and shift from tech stocks to safer investment vehicles. Suggesting that the markets are experiencing a 'bear market' scenario, Bailey advised investors not to make impulsive decisions.

Highlighting uncertainties in trade policies and high inflation expectations, Bailey said:

''Sell the winning stocks, accept the 'bear' market scenario, and be cautious.''

PROBABILITY OF RECESSION IN THE US

In Al Jazeera's report, it was stated that the selling trend accelerated with economic warnings coming over the weekend. It was noted that sharp declines began on Monday, especially in speculative investments. Experts argued that the US economy could enter a recession following the inflation data to be released on Wednesday (today).

When asked if he expects a recession this year, Trump replied:

'I don't like to make such predictions. Big changes are happening, and we are in a transition process.'

'WE ARE IN A DETOX PERIOD'

US Treasury Secretary Scott Bessent stated that the country is moving toward reducing public spending and that this has initiated a 'detox period.' Bessent emphasized that the US would "profit" from the implementation of additional taxes. US media commented on Bessent's statements, suggesting that 'the Trump administration will continue the trade war.'

According to NBC News, while tech stocks have continued their downward trend since the beginning of the year, only Meta managed to escape the losses. Tesla's market value has seen a $600 billion decline by 2025, while Nvidia and other major tech companies have also experienced double-digit value losses.

Centre Asset Management Chief Investment Officer James Abate assessed, 'These stocks were extraordinarily highly valued recently. Now, there is clearly a risk-off process in the market.' Pointing out that the declines are a 'correction,' Abate added that he expects the markets to recover in the long term.

News Source: 12punto