Tech Titans Tumble: The Market Shake-Up

Apple and Nvidia led a broad sell-off in technology stocks due to U.S. recession fears and Berkshire Hathaway cutting its stake in Apple. The losses wiped out nearly $900 billion in market value as high-performing shares plummeted. Analysts believe this could be an opportunity for long-term investments.

Apple and Nvidia led a sell-off in the technology sector on Monday as concerns over a potential U.S. recession and Berkshire Hathaway's decision to reduce its stake in the iPhone maker ended a prolonged rally in tech stocks. Major players like Alphabet, Amazon, Meta Platforms, Microsoft, and Tesla also saw shares dive as much as 6.5%.

The combined market value of 'The Magnificent Seven' was set to lose nearly $900 billion. Chip stocks, which have been top performers in AI trades, also suffered significant losses, with Advanced Micro Devices, Intel, Super Micro Computer, and Broadcom falling by up to 7.8%. The Philadelphia Semiconductor Index dropped nearly 3%.

This market shake-up followed a weak U.S. payrolls report, driving investors towards safer assets and increasing expectations that the Federal Reserve might soon cut interest rates to stimulate growth. Over the weekend, Warren Buffett's Berkshire Hathaway announced it had halved its stake in Apple, sparking concerns about the tech industry's future. Despite these declines, analysts suggest this dip could be a buying opportunity for long-term investors.

(With inputs from agencies.)