On September 3rd, global financial markets were shocked as major tech stocks and cryptocurrencies both experienced severe declines, wiping out significant amounts of market value.
The “Magnificent Seven” tech giants – Alphabet (Google's parent company), Amazon, Apple, Meta, Microsoft, Nvidia and Tesla – lost a staggering $550 billion in combined market capitalization, making it the largest single-day loss for an industry leader in recent months.
This market crash coincided with a 6% plunge in the cryptocurrency market, wiping out roughly $100 billion in market capitalization. Bitcoin led the decline with a drop of over 5%, hitting $55,746 at the opening of Asian trading. Ethereum also suffered a major selloff, dropping 7% to just above $2,300 before showing slight signs of recovery.
The market downturn has been dubbed the “Slump Term,” a term referring to a historically bearish month of September for both the stock and crypto markets.
Nvidia, in particular, faced its sharpest share price decline since April 2024 in the wake of an antitrust subpoena issued by the U.S. Department of Justice.
Market analysts expect volatility to continue through the month, potentially causing Bitcoin to surge in relief in the short term, but the near-term outlook remains unclear as trading volumes remain low, making the likelihood of a quick recovery unclear.
