In a recent tweet, Elon Musk, the CEO of Tesla Inc., ridiculed the massive 10% decline in Nvidia Corp.'s stock and the subsequent $211 billion loss in market capitalization. Musk referred to the decline as "rookie numbers," highlighting its insignificance in his eyes.

The sharp decline in Nvidia's stock on Friday resulted in the company suffering the second-largest single-day loss in the history of the U.S. stock market. This significant blow contributed to the overall record-breaking $950 billion loss in market capitalization for the Magnificent 7 group of stocks, which includes companies like Apple, Google, Microsoft, Meta Platforms, Amazon, Tesla, and Nvidia.

The market impact of Nvidia's plummeting stock value was felt across the tech sector. The tech-heavy Nasdaq 100 index experienced its worst day since late 2023, with a 2.1% drop on Friday, marking the fourth consecutive week of declines. The Nasdaq 100's decline also had a negative effect on the Invesco QQQ Trust, which fell 5.3% on a weekly basis, its worst performance since October 2022.

The decline in Nvidia's stock value was caused by a series of events, including worse-than-expected earnings from ASML Holdings and a reduced outlook for the chip market by Taiwan Semiconductor Manufacturing Company. Despite the stock decline, TSM reported a revenue surge of 16.5%, driven by robust demand from artificial intelligence firms.

The pessimistic sentiment surrounding U.S. tech stocks was further exacerbated by the declines seen in other companies in the semiconductor sector, such as Super Micro Computer, Inc. These collective declines contributed to the overall negative sentiment in the market.

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