U.S. financial markets suffered another major blow as roughly $1 trillion in market capitalization was erased from equities in a single session, underscoring the growing strain across risk assets. The selloff was mirrored in digital markets, where the total cryptocurrency capitalization fell by approximately $330 billion on the day.
The losses were concentrated in technology stocks, many of which had been trading near or at record highs only weeks earlier. The sharp reversal has intensified concerns that the market is undergoing a deeper repricing rather than a short-lived correction.
The downturn also pushed cumulative losses across leading technology companies into the trillions, signaling a decisive shift in investor sentiment.
Tech leaders drive the equity decline
Several high-profile technology and crypto-linked stocks have suffered dramatic drawdowns from their recent peaks. Shares of Strategy have plunged about 80%, while Coinbase is down roughly 66%. Netflix has fallen 40%, Palantir 36%, and AMD around 27%.
Losses have also weighed heavily on mega-cap leaders. Microsoft and Broadcom are both down about 27% and 25% respectively, while Tesla has slipped roughly 20%. Nvidia, one of the biggest beneficiaries of the artificial intelligence boom, is down about 18%, and Meta has declined roughly 17% from its recent highs.
Together, the so-called “Magnificent Seven” technology stocks have now shed an estimated $3 trillion in combined market capitalization since their latest record levels, highlighting the scale of the reversal in some of the market’s most crowded trades.
Crypto adds to the pressure
The crypto market has moved in lockstep with equities during the selloff. Bitcoin and other major digital assets declined sharply, contributing to the $330 billion drop in total crypto market value. Analysts say the correlation reflects tightening liquidity and a broader move away from speculative assets.
As previously covered, periods of synchronized selling across equities and crypto often point to forced deleveraging rather than asset-specific news. Elevated volatility and margin pressures have amplified losses across both markets.
The combined equity and crypto drawdown underscores how quickly confidence has deteriorated after months of optimism driven by artificial intelligence enthusiasm and expectations of easier financial conditions.
What investors are watching next
The scale of the losses has prompted investors to reassess risk exposure, particularly in high-growth and technology-heavy portfolios. While some market participants argue that valuations had become stretched, others warn that continued volatility could trigger further selling if key support levels fail.
Attention is now turning to macroeconomic signals, central bank guidance, and corporate earnings for clues on whether markets can stabilize. Analysts caution that until volatility subsides and liquidity improves, downside risks may remain elevated.
For now, the message from markets is clear: the unwind in technology stocks and crypto has erased trillions in value, marking one of the most significant shifts in risk appetite in recent years.