Tech stocks suffer worst week in nearly a year, driven down by war worries, Meta legal woes

This past week proved to be particularly challenging for technology investors, as the Nasdaq recorded its steepest decline since April 2025, plummeting by 3.23%. The downturn was exacerbated by rising energy prices linked to escalating concerns over the U.S.-Iran conflict. Prominent tech giants such as Meta and Micron were notably affected, with both companies experiencing double-digit losses. Meta, in particular, endured a staggering drop of over 11% following two significant legal setbacks that highlighted the company's ongoing difficulties in regulating its platforms, Facebook and Instagram. These platforms remain critical revenue sources as Meta competes with leaders like Google, OpenAI, and Anthropic in the AI arena. Other major players in the tech sector also faced challenges, with Alphabet, Google's parent company, falling nearly 9%, while Microsoft dropped close to 7%. Nvidia and Amazon both saw their shares decline by approximately 3%, and Tesla's value decreased by almost 2%. Among the giants, Apple managed to fare the best, achieving a modest gain for the week. On the semiconductor front, Micron's stock plummeted over 15%, marking a stark contrast to its previous year’s performance, where it had thrived amidst a supply shortage driven by soaring AI processor demand. Despite announcing a remarkable revenue increase to $23.86 billion for the second quarter and strong guidance for future gross margins, the company could not stave off investor unease amid global market volatility. Oil prices surged to their highest levels in over three years, as tensions in the Strait of Hormuz intensified worries about energy supply. In light of this, President Trump expressed a desire to see an end to the conflict in Iran, underscoring the growing economic concerns for Republicans as the midterm elections approach. As tech investors reevaluate their positions, all eyes are on Elon Musk. His companies, including SpaceX, which recently achieved a valuation of $1.25 trillion, are preparing for significant developments. An IPO filing is anticipated soon, potentially setting a record for the largest offering ever. Additionally, Tesla is set to announce its quarterly delivery figures next week, keeping investors on alert for any signs of recovery amid the current market turbulence.