Technology stocks plummeted for three days, wiping about $1.5 trillion off the Nasdaq 100’s market value.
The tech-heavy benchmark fell 4% on Monday, extending losses to 10% since the Federal Reserve raised rates by 0.5 percentage points and Chairman Jerome Powell signalled the central bank would continue raising rates at that pace. According to data compiled by Bloomberg, it was the index’s most significant three-day drop since September 2020.

Tech companies are not alone in this downturn. The S&P 500 fell 3.2% to close at 3,991, below the key psychological level of 4,000. The broad equity benchmark was on track for its worst three-day performance since the March 20, 2020 pandemic lows. This year, the Nasdaq 100 is down 25% on soaring US Treasury yields and growing concerns that rising interest rates and soaring inflation could tip the US economy into recession. It was the biggest drop since the start of the Covid-19 pandemic when the index fell 28% in about a month.

Few tech companies have survived this year’s sell-off. On Monday, Microsoft Corp. fell below $2 trillion in market value for the first time since June 2021, with the stock down 21% this year. Amazon.com Inc. has fallen more than 40% from its 2021 record. Apple was nearly overtaken by oil giant Saudi Aramco to become the world’s largest company after falling 3.7% on Monday.

The iPhone maker closed the year with a market value of $2.47 trillion after falling 14% this year, compared with Saudi Aramco’s $2.45 trillion. Cybersecurity stocks Crowdstrike Holdings Inc., Zscaler Inc. and Okta Inc. have fallen the most on the Nasdaq 100 over the past three days, all down more than 26%.