Technology stocks recorded their sharpest weekly decline in almost a year, as rising geopolitical tensions and company-specific developments weighed heavily on investor sentiment. The tech-heavy Nasdaq Composite fell 3.23% over the week, marking its worst performance since April 2025. The sell-off came as concerns over escalating conflict in the Middle East pushed energy prices higher and increased market uncertainty.
Major technology companies saw broad declines. Alphabet dropped nearly 9%, while Microsoft fell close to 7%. Shares of Nvidia and Amazon also declined, though at a more moderate pace. Tesla slipped slightly, while Apple managed to post a marginal gain.
Meta Platforms recorded the steepest drop among major tech firms, falling more than 11% during the week. The decline followed two legal setbacks in US courts, adding pressure on the company’s core social media business.
Meanwhile, Micron Technology shares dropped over 15% as investors moved away from the stock after a strong rally in recent months. The company had previously benefited from increased demand linked to artificial intelligence technologies, but broader market concerns overshadowed its recent earnings performance.
Rising oil prices added to the pressure on technology stocks. Supply concerns linked to tensions around key energy routes have pushed crude prices higher, increasing fears about inflation and economic slowdown.
Market participants noted that higher energy costs and geopolitical uncertainty tend to weigh on growth-oriented sectors such as technology, where valuations are often sensitive to changes in economic outlook.
Despite strong fundamentals in parts of the sector, analysts say investor sentiment has turned cautious in the near term, with many opting to reduce exposure to risk assets.
Attention is now shifting to upcoming developments in the technology space, including potential major listings and corporate earnings updates, which could influence market direction in the coming weeks.
