Tech's 3-week selloff, led by Tesla, wipes out $2.7 trillion in value from megacaps

Core Viewpoint - The U.S. tech industry, particularly the "Magnificent Seven," has experienced a significant decline in market value, losing a combined $2.7 trillion, driven by concerns over potential trade wars and economic downturns under President Trump's administration [2][3]. Group 1: Market Performance - The Nasdaq index has dropped 4.9% for the week, potentially marking its worst weekly performance in six months, with a risk of exceeding a 5.8% decline, which would be the steepest drop since January 2022 [2]. - The seven most-valuable U.S. tech companies have seen substantial losses: Apple down $529 billion (17%), Microsoft down $267 billion (close to 9%), Nvidia down $577 billion (17%), Amazon down $347 billion (14%), Alphabet down $275 billion (12%), Meta down $286 billion (16%), and Tesla down $386 billion (33%) [5][6][7]. Group 2: Economic Concerns - President Trump's proposed high tariffs on major trading partners and potential mass government layoffs have raised fears of a recession, impacting consumer and business spending [3]. - The tech sector's reliance on international trade for key components and manufacturing exacerbates these concerns [3]. Group 3: Market Expectations - Following Trump's election, the market initially surged due to expectations of reduced regulation and favorable tax policies, with the Nasdaq reaching a record close on December 16 [4]. - Goldman Sachs has referred to the tech group as the "Maleficent 7," noting that it now trades at its lowest valuation premium relative to the S&P 500 since 2017, and has adjusted its price target for the S&P 500 down to 6,200 from 6,500 [8].