SpaceX has found itself at the center of a massive technology stock sell-off. Over three consecutive days, the company's shares plunged by more than 16%.
The Financial Times estimates that SpaceX's market valuation has shrunk by $400 billion. Meanwhile, Bloomberg reports that losses could reach as high as $600 billion.
The decline began after the company issued investment-grade bonds for the first time. Investors reacted sharply to the rapid transition from equity issuance to debt financing.
SpaceX, which is often viewed as Elon Musk's flagship AI and aerospace conglomerate, led the market correction. Other major tech players quickly followed suit.
Global indices have retreated: the MSCI Asia fell by more than 2%, while Nasdaq futures dropped 1.3%. European futures also lost roughly 1%.
Rising U.S. bond yields have been identified as a key factor in the slump. This trend has increased the pressure on high-priced technology stocks.
Market sentiment is also being influenced by news from the Middle East. The United States has granted Iran a 60-day license to sell oil amid ongoing peace talks.
Analysts note that SpaceX attracted numerous passive funds and leveraged ETFs following its IPO. Short options and rapid capital shifts have served to exacerbate the volatility.
The company's next steps will be determined by its performance in August. In the meantime, the correction has impacted the entire technology sector.
