Tech stocks suffer worst week in nearly a year, driven down by war worries, Meta legal woes
📖 Full Retelling
Meta's twin legal defeats this week and a big selloff in Micron spurred a drop in technology stocks, which were broadly hit by rising oil prices.
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The Nasdaq dropped 3.23% for the week. The last time the tech-heavy index witnessed such a selloff was in April after President Donald Trump's threats of sweeping tariffs led to a near panic in the market. Google parent Alphabet fell nearly 9% and Microsoft sank almost 7% this week, while Nvidia and Amazon slipped about 3% each. Tesla slid almost 2%. Among tech's megacap companies, Apple held up the best, notching a slight gain for the week. Meta had the worst week in the group, dropping more than 11% after two stinging court defeats added to the social media company's challenges. Both trials — one in Santa Fe, New Mexico , and the other in Los Angeles — pointed to the struggles Meta has faced to adequately police Facebook and Instagram, which remain the primary cash engines as the company chases Google, OpenAI and Anthropic in artificial intelligence. Meanwhile, investors rotated out of memory maker Micron, which has been one of the market's standout performers in the past year due to a shortage caused by soaring demand for AI processors. Micron shares plunged more than 15% for the week, though they're still up almost 300% over the past 12 months. The selloff started last last week, after Micron's blowout second-quarter earnings report . Revenue almost tripled to $23.86 billion in the latest quarter, and the company issued strong guidance, projecting gross margins of about 80% for the next quarter. "Memory today is very tight supply and supply cannot be brought up that easily, and you are seeing that in our results," Micron CEO Sanjay Mehrotra told CNBC's " Squawk on the Street " after the report. But with global markets feeling the pain of rising fuel costs and uncertainty about when the conflict in the Middle East may settle, Micron's results did nothing to soothe Wall Street's nerves. Oil prices on Friday closed at their highest in more than three years after incidents in the Strait of Hormuz exacerbated investors' energy supply concerns. In a Truth Social post,...
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