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Why Microsoft, Nvidia, and Salesforce Stocks Fell Today

By Joe Tenebruso – Sep 8, 2020 at 7:24PM

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The tech titans lost a staggering $100 billion in total market value.

What happened

Technology stocks' September sell-off continued on Tuesday. By the close of trading, shares of Microsoft (MSFT 1.24%), Nvidia (NVDA 6.51%), and (CRM -0.27%) were all down more than 5%. 

So what 

The Nasdaq Composite suffered through another brutal day, as the tech-heavy index shed more than 4% of its value. The S&P 500 and Dow Jones Industrial Average suffered losses of more than 2%. Microsoft, Nvidia, and Salesforce certainly played a part in the indexes' declines. The tech giants collectively lost more than $100 billion in market capitalization.

A keyboard button labeled sell.

Investors continued to bail out of tech stocks on Tuesday. Image source: Getty Images.

Reports that Japanese investment firm Softbank may have helped to drive the stock prices of many large tech stocks higher via massive option trades sparked concerns among investors. Many traders are worried that with the stock markets pulling back violently in recent days, Softbank may have to unwind its positions, which could accelerate the declines. 

Now what

Like many high-quality growth stocks, Microsoft, Nvidia, and Salesforce have seen their shares surge since their lows back in March. Much of the gains were justified given the strength of their businesses and their attractive growth prospects. However, investors have begun to question if some of their gains were driven by a speculative trading frenzy. In turn, many have decided to take profits, and the selling could continue in the days ahead.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Microsoft, NVIDIA, and The Motley Fool recommends Softbank Group and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool has a disclosure policy.

Stocks Mentioned

Microsoft Stock Quote
$247.40 (1.24%) $3.03
Salesforce Stock Quote
$130.13 (-0.27%) $0.35
Nvidia Stock Quote
$171.69 (6.51%) $10.49

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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