NEW YORK: SpaceX suffered a historic market setback, losing an estimated $400 billion in value in a single day as a broad sell-off swept through technology stocks amid concerns over rising interest rates and heavy investment in artificial intelligence.
According to market reports, the decline was driven by rising U.S. Treasury yields, expectations of further interest rate increases and growing investor concerns about valuations in the technology sector.
Shares of SpaceX Official Website fell sharply during trading, ending the session down 16.4% at $154.60. The stock had earlier recorded a 3% decline before selling accelerated later in the day.
The company’s shares have now fallen 31.5% from record highs reached following its $86 billion initial public offering on June 11.
The sell-off reduced SpaceX’s market capitalization from a peak of nearly $3 trillion to approximately $2.03 trillion, marking one of the largest single-day losses in corporate market value on record.
Analysts said the decline ranks among the biggest one-day market capitalization losses ever recorded by a publicly traded company.
Despite the sharp drop, shares recovered modestly in later trading, gaining about 2.4% as some investors moved to buy the stock at lower levels.
Market experts said the volatility reflects growing concerns that the U.S. Federal Reserve may keep interest rates higher for longer or implement further increases if inflation remains elevated. Rising bond yields typically weigh on high-growth technology companies by increasing borrowing costs and reducing the attractiveness of future earnings.
Investors are also closely monitoring the substantial spending commitments being made across the artificial intelligence sector, which have fueled questions about profitability and long-term returns.
