Tech Companies Suffer Heavy Losses amid Rising Geopolitical Tensions

U.S. markets ended a turbulent week on a weak note, particularly for technology investors, as the Nasdaq Composite recorded its worst weekly decline since April 2025.

The index fell 3.23% in a week, amid a broad sell-off driven by rising geopolitical tensions and a surge in global energy prices linked to the ongoing conflict involving Iran.

Major technology stocks posted significant declines. Shares of Meta and Micron Technology dropped sharply, while losses extended across the sector.

Alphabet fell nearly 9%, and Microsoft declined about 7%. Meanwhile, Nvidia and Amazon both slipped around 3%, while Tesla dropped roughly 2%.

Apple was the only one among major tech firms to post slight gains during the week.

Meta recorded the steepest losses, with its stock falling more than 11% after two major legal setbacks added to the company’s challenges, particularly around managing its core platforms, Facebook and Instagram, amid intensifying competition in artificial intelligence.

Micron shares plunged more than 15% despite strong financial results. The company, one of last year’s top performers due to high demand for AI-related memory chips, reported nearly tripled quarterly revenue to $23.86 billion and projected strong margins for the coming quarter.

CEO Sanjay Mehrotra noted that supply remains constrained and difficult to scale, even as demand continues to surge.

Oil prices climbed to their highest levels in more than three years, fueled by disruptions tied to tensions around the Strait of Hormuz, a key route for global energy supplies.

The surge in fuel costs has heightened investor concerns about inflation, corporate profitability, and the broader economic outlook.

Adding to the uncertainty, Donald Trump indicated efforts to end the conflict, acknowledging its growing economic and political impact ahead of U.S. midterm elections.

With investors pulling back from technology stocks, attention is turning to upcoming developments in the sector.

Elon Musk remains in focus as speculation grows around a potential initial public offering for SpaceX, which was recently valued at $1.25 trillion after merging with xAI.

Meanwhile, Tesla is set to report quarterly earnings next week, a key test for market sentiment.

The week’s sharp losses highlight how vulnerable even the most dominant sectors have become to global shocks, as rising energy costs and geopolitical risks continue to weigh heavily on investor confidence.