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Nasdaq 100 Drops 10% as Tech Stocks Sell Off Amid Recession Fears

Coin WorldFriday, Mar 7, 2025 11:14 am ET
1min read

The US stock market has witnessed a significant sell-off in the technology sector, leading the Nasdaq 100 Index to enter correction territory. The index fell 10.2% from its peak last month, marking a notable decline in the performance of large-cap tech stocks that have driven the market higher over the past two years. This sharp drop is largely attributed to investors rapidly unwinding their positions in AI-related companies.

NVIDIA, a key player in the tech sector, has seen its market value shrink by over one-fifth since the Nasdaq 100 index hit a historic high on February 19th. This decline has contributed significantly to the overall index drop, with other major decliners including tesla, apple, palantir Technologies, meta platforms, and Amazon. The sell-off reflects a broader shift in investor sentiment, as the exceptional performance of US tech 'FAANG' stocks in recent years has given way to concerns about future growth potential.

George Cipolloni, a portfolio manager, noted that while large tech companies reported good earnings last quarter, the outlook for future growth is uncertain. At current P/E ratios, the growth potential of these companies appears limited, leading to a more cautious approach from investors. This sentiment has been exacerbated by concerns over US trade policy and a darkening outlook for US economic growth, with investors increasingly acting as if a recession may be on the horizon.

The broader market has also felt the impact of the tech sell-off, with the S&P 500 falling 1.78% and the Dow Jones Industrial Average closing lower by 428 points. The Nasdaq 100, which tracks the performance of the 100 largest and most active non-financial companies listed on the Nasdaq Stock Market, finished the day in a correction, down 10% from recent highs. This marks the second time the index has entered correction territory this year, highlighting the volatility in the tech sector.

The sell-off in tech stocks has been particularly pronounced in high-flying mega-tech stocks, which had been driving the market's gains in recent months. The decline was driven by a combination of factors, including concerns over US trade policy and a darkening outlook for US economic growth. Investors are increasingly acting as if a recession may be on the horizon, leading to a multiday decline in the S&P 500 of 7

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03/08

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03/08
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applesandpearss
03/08
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03/08

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CrisCathPod
03/08
@agnesmoralesss Yessir
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GoodCoffeee
03/07
$META Power Hour!
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johnnyko55555
03/07
@GoodCoffeee I had $META, sold early. Regretting now, FOMO hitting hard.
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Inevitable-Candy-628
03/08
@GoodCoffeee How long you holding $META? Any specific target in mind?
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FirmMarket4692
03/07
$PLTR Bullish vibes! 💰💰
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BarrettGraham
03/07
@FirmMarket4692 How long you holding $PLTR? Any price target in mind?
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Janq55
03/08
@FirmMarket4692 I had $PLTR, sold early. Regretting now, feels like FOMO.
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Very_Guilty_Lawyer
03/07
$PLTR were signing contracts fast
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Dynasty__93
03/08
@Very_Guilty_Lawyer How long you holding PLTR? Any specific targets?
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michael_curdt
03/07
$PLTR catch you at 130 later this year
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alecjperkins213
03/07
$PLTR gonna hit $89.10 🤷‍♂️
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Jera_Value
03/07
$PLTR Time to fire up the grill... Having whiskey and bear meat for dinner, boys!
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Sugamaballz69
03/07
$META heading back to 700+
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skilliard7
03/07
$AAPL come on apple just drop already you're messing with my puts 😤
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k_ristovski
03/07
$META super cheap!
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WinningWatchlist
03/07
$META Triple Bottom Formation broke today
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istockusername
03/07
@WinningWatchlist META's bottom formation? Meh, tech's a wreck anyway.
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StrangeRemark
03/07
$NVDA This is probably the toughest market since COVID started
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Plane-Salamander2580
03/07
$PLTR Palantir feels great
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stoked_7
03/07
@Plane-Salamander2580 How long you been holding $PLTR? Think it's gonna bounce back or just a dead cat rise?
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HotAspect8894
03/07
@Plane-Salamander2580 I had $PLTR, sold too early man... FOMO hitting hard seeing it dip like this.
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waterlimes
03/07
$META Wow why NFP miss 151K vs 160K not that big of deal DOGE cut a lot of Fed jobs Way overreacted
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