Stock Market Declines as Tech Stocks Slide and SpaceX Continues Sharp Decline
U.S. stock markets fell on Monday, June 22, 2026, with the S&P 500 declining 0.37% and the Nasdaq Composite dropping 1.32% due to weakness in technology stocks. SpaceX shares fell sharply for the third consecutive day, declining 16% as investor confidence wavered following the company's blockbuster IPO debut just two weeks earlier.
Market Loses Ground as Tech Weakens
The S&P 500 fell on Monday, weighed down by declines in technology stocks. Wall Street also assessed the latest developments in the Iran war negotiations and awaited the release of inflation data closely watched by the Federal Reserve. The broad market index fell 0.37% to 7,472.79, while the Nasdaq Composite declined 1.32% to end at 26,166.60.
Tech Giants Lead Decline
Major tech names pulled the market into negative territory. Shares of Alphabet dropped 5%, spurred by concerns around artificial intelligence talent departures. Amazon and Meta Platforms lost 4.8% and 2.3%, respectively. Microsoft shares also declined 3%. These declines in mega-cap technology stocks reflected broader investor concerns about valuations and competitive dynamics in the AI race.
SpaceX Stock Tumbles
SpaceX fell 16%, posting its third straight daily decline. SpaceX shares have fallen from their recent high, raising questions on the stock's sustainable valuation after its blockbuster market debut on June 12. Currently, SpaceX is trading at $165.08 a share, after closing at $185 a share on June 18. Despite its recent slide, SpaceX is still more than 31% above its IPO price.
Market Breadth and Outlook
The Dow Jones Industrial Average added 148.01 points, or 0.29%, led by a nearly 4% gain in Caterpillar. Small cap stocks have outperformed in 2026. The Russell 2000 has surged nearly 21%, while the S&P 500 has added less than 10%. The divergence between growth and value stocks reflects shifting investor sentiment as markets adjust to evolving economic conditions and geopolitical developments.