SpaceX shares extend slide with another 3% fall; over $600 billion in market value wiped out in 3 sessions

SpaceX has experienced a three-day selloff totaling $600 billion in market capitalization destruction, with the stock declining an additional 3% and falling below its initial public offering price. This sharp correction signals a significant repricing event in a high-profile mega-cap technology holding, typically indicative of broader sector sentiment shifts rather than isolated weakness.

The decline reflects three primary headwinds: elevated valuation concerns tied to the company's pre-correction premium multiples, concerns over aggressive debt-financed capital allocation toward AI infrastructure expansion, and contagion from weakness across the broader technology sector. The magnitude of the drawdown—wiping nearly $600 billion in three sessions—exceeds typical daily volatility and suggests institutional positioning adjustments or systematic deleveraging events in technology-heavy portfolios.

The anticipated Nasdaq-100 inclusion, typically a catalyst for inflows and technical support, has failed to arrest the decline, indicating that macro headwinds and fundamental repricing are overwhelming index-inclusion tailwinds. This disconnect suggests risk-off momentum is dominating index-constituent behavior regardless of passive flows.

Sector implication: The selloff underscores emerging vulnerability in mega-cap technology growth narratives, particularly those dependent on debt financing and AI capital intensity. Broader Technology and Communication sectors face renewed valuation pressure, while the magnitude of drawdown may trigger margin calls and forced selling across correlated equity positions, amplifying sector-wide contagion risk.