Markets regained some stability on Tuesday after Monday’s sharp sell-off, with global stock markets ending a three-week, $6.4 trillion decline.
Nvidia (NVDA) rebounded in premarket trading on Tuesday, rising more than 2%, while Tesla (TSLA) also recovered, rising after a 4% drop the previous day.
Despite those gains, Nvidia shares fell more than 6% on Monday as Monday’s market sell-off wiped out more than $650 billion in the “Mag Seven” stock’s valuation.
The iconic group has lost roughly $1.3 trillion in market capitalization over the past three trading sessions.
Fellow big names Alphabet (GOOGL, GOOG) fell 4%, and Meta (META) fell more than 2%.
E-commerce giant Amazon (AMZN) and software maker Microsoft (MSFT) also fell.
In addition to the market-wide sell-off, specific company news also weighed on Mag Seven shares.
On Monday, a judge ruled that Alphabet’s Google search and advertising business violated antitrust laws, sending the tech giant’s shares lower during trading hours.
Apple (AAPL) fell more than 4% after Berkshire Hathaway (BRK-B) revealed it had cut its stake in the iPhone maker in half over the weekend.
Nvidia fell as much as 13% at the market open as it tried to make up some of its losses, with analysts saying recent negative factors were weighing on the AI chip giant.
The Information reported that the launch of the company’s next-generation AI chips will be delayed by three months, potentially affecting some of its largest customers, including Microsoft, Alphabet and Meta.
“Nvidia has an opportunity to sell to Microsoft, Amazon, Google and Meta right now as they’re all eager to build out data centers as quickly as possible, and that window will close at some point,” Gil Luria, senior software analyst at DA Davidson, told Yahoo Finance on Monday.
“If Nvidia misses out on some of its sales during that period, that will impact Nvidia’s valuation,” the analyst said.
Monday’s move follows a recent sharp sell-off on Wall Street after semiconductor stocks took a big hit over the past week.
On Friday, Nvidia closed at the session’s low, down just 1.8%, but Intel (INTC) shares plunged more than 26% after a dismal second-quarter earnings report, with a broader selloff in chip stocks leading the tech sector lower.
The July employment report showed that job growth slowed last month and the unemployment rate hit its highest level in nearly three years, sending the Nasdaq Composite Index (^IXIC) into correction territory, defined as a 10% drop from its recent high.
Ines Ferre is a senior business reporter at Yahoo Finance. Follow her on X at @ines_ferre.
