SPACEX SHARE PLUNGE TRIGGERS GLOBAL TECH SELL-OFF

Global technology stocks declined sharply following a sharp fall in SpaceX shares. Elon Musk's rocket company dropped 16 per cent to $154 after announcing a major bond issue valued at least $20bn to fund artificial intelligence plans and refinance short-term borrowing. The sell-off spread across markets overnight, with Asian exchanges experiencing significant losses and analysts attributing the broader decline to the SpaceX announcement.

South Korea's Kospi index fell 8.3 per cent, prompting the stock exchange to halt trading as investors sold chip-related holdings. Wall Street's Nasdaq declined one per cent following losses the previous day that erased billions in technology company valuations. SpaceX's fall marks a substantial reversal from its peak of $201 per share recorded a week earlier, when the company's value climbed 25 per cent in the days following its New York IPO. Chris Beauchamp, chief market analyst at IG, attributed the broader downturn to SpaceX's performance, stating the company "can be fairly blamed as the culprit."

British investment trusts with SpaceX exposure reported declines. Scottish Mortgage Investment Trust, where SpaceX holdings represent approximately one-fifth of its £16bn fund, fell four per cent to 1,381.62p by midday. Baillie Gifford's US Growth Trust, with SpaceX comprising around 15 per cent of its portfolio, dropped three per cent to 321.78p. The FTSE 100 fell 0.4 per cent to 10,391.72p, underperforming larger declines recorded in continental European indices including Paris's Cac 40 and Germany's Dax.