The tech selloff that started last week has continued after Labor Day, with the Nasdaq dropping another 2.3% in early-morning trading on Tuesday. Several Silicon Valley giants — including Apple, Alphabet and Facebook, which were all down more than 2% — dipped lower, while Tesla was especially hit hard, falling 13.7% within the first 90 minutes of trading.
Tesla’s steep drop comes after the electric car company wasn’t added to the S&P 500 on Friday afternoon. The decision came as a surprise for many analysts and investors who had expected Tesla, which is led by Elon Musk, to join the benchmark index after surging more than 400% since early April. In the last week, Tesla has went from north of $500 per share to $360.50 per share.
Overall, the Nasdaq’s decline pushed the index to 11,053 points — wiping out about a month’s worth of gains. Still, even with the selloff, the index is still up about 22% on the year.
While some of the biggest tech stocks fell on Tuesday morning, there were a few standouts that were bucking the trend. Roku, for one, was up 5.8% to $169 per share — helping to offset its fall from about $180 per share to $156 per share late last week. Snap Inc. and Netflix investors also enjoyed a modest bump of about 1% on Tuesday morning.
Wedbush analyst Dan Ives, in a note to clients last Thursday, said he views the Nasdaq’s drop as a “speed bump on a path still higher for tech stocks.” Ives said the economic recovery expected to take place next year will “likely super charge the fundamentals and growth trajectories of well positioned tech stocks,” and pointed to Apple and Microsoft as two companies in particular he thinks will weather the current selloff.
Both the Dow Jones and S&P 500 were down 1.4% and 1.6%, respectively, on Tuesday morning.