Scottish Mortgage Investment Trust (LSE:SMT) shares fell nearly 5% on Tuesday. The decline followed a significant plunge in SpaceX, which accounts for approximately 18% of the trust's portfolio.
SpaceX shares dropped over 16% on Monday. This sell-off erased more than $600 billion in market value since the company's peak. The decline directly lowered the trust's net asset value and share price.
Market pressure followed a broader technology downturn and concerns over the company's valuation after its recent IPO. SpaceX also reportedly plans a multi-billion dollar bond sale to fund AI development.