Wall Street: tech is being corrected, the Nasdaq loses 10% in one month

Is the tech bubble in the markets exploding? The question arises, and the specter of the dot-com bubble of the early 2000s is not far off. Boosted by the health crisis, which saw tech being at the center of new ways of working, the sector was corrected on the stock market in the first quarter of 2021. A real “correction”, as the experts call it.

Nasdaq: -10% in less than a month

Confirmation fell on Monday, March 8, 2021: the Nasdaq, an index favored by tech on Wall Street, experienced a further downward session, unlike other more traditional indices which closed higher. In question ? The deployment of vaccines which is progressing, despite delays, and which suggests a return to a slightly more normal life, perhaps at the end of the year or even the summer of 2021.

Investors are therefore turning away from tech: the Nasdaq recorded a session down 2.2% and closed at 12,609.16 points. However, on February 12, 2021, less than a month earlier, the record was reached: 14,095.47 points. Unheard of… which will not have lasted. With a fall of more than 10% in less than a month, the Nasdaq undergoes what is called a “correction” in the stock market. The fall could be even more severe, the index being still more than 50% above its pre-pandemic record, reached on February 14, 2020 and which was then 9,731.18 points.

Naturally, the misfortune of some making the happiness of others, it is the S & P500 and the Dow Jones which benefit: they climb, on March 8, 2021, by 1.7% and 3.9% respectively.

Tesla: symbol of correction in tech

All GAFAs were affected by the fall on Monday March 8, 2021… and all are below their level on February 12, 2021. Microsoft closes down 1.82%, Alphabet (Google) 4.27%, Apple by 4.17% and Amazon by 1.62%.

But the symbol of this correction on the Nasdaq is undoubtedly Tesla, the all-electric builder of Elon Musk. The billionaire, who was once the richest man in the world surpassing $ 200 billion in fortune in January 2021, has seen it melt: on March 8, 2021, it was only 149 billion, down 7.94 billion in one day and 20.8 billion since the start of 2021.

Tesla stock, which was worth nearly $ 880 in early February 2021, has lost nearly a third of its value since, closing at $ 536 (-5.84%) on March 8, 2021. The increase over one year remains over 400%. Tesla’s valuation followed: from 826 billion in early January 2021, capitalization fell to 540 billion on March 8, 2021, or $ 300 billion less.