SpaceX shares rebounded last night following a rout that wiped more than $1 trillion off its value in just a week – costing founder Elon Musk $350billion.

As technology stocks around the world tumbled and the Nasdaq plunged 1.5 per cent in New York, the rocket and AI firm’s shares fell as low as $147 in early trading.

That took losses since its peak of $225 a week earlier to around 35 per cent. It also left SpaceX valued at $1.93 trillion, down from $2.97 trillion at its highest point.

The slump in the share price proved costly for Musk, who became the world’s first trillionaire when SpaceX listed on the Nasdaq this month in a record-breaking initial public offering (IPO).

His fortune fell from $1.45 trillion to $1.1 trillion, according to calculations by Forbes, in the biggest-ever loss of personal wealth.

But SpaceX shares staged a recovery in later trading, closing up 2.7 per cent at $159, well above the IPO price of $135.

The rebound came despite a sell-off in global markets triggered by concerns over high tech stock valuations – and wild swings in the SpaceX share price.

The threat of higher interest rates in the US, as the central bank – the Federal Reserve – battles to keep inflation in check, has also spooked markets.

Chipmakers were among the hardest hit on Wall Street, with Micron down 13 per cent, Qualcomm 7.9 per cent lower and Nvidia falling 3.6 per cent.

In Europe, the Dax benchmark fell 1 per cent in Frankfurt and the Cac was down 0.7 per cent in Paris. In London, the FTSE 100 inched down 0.09 per cent, or 9 points, to 10,428.85.

South Korea’s Kospi tumbled 10 per cent overnight into Tuesday morning, with chip maker SK Hynix down 12.5 per cent and electronics giant Samsung down 12.2 per cent.

Alex Rudolph, chief technical analyst at broker IG, said SpaceX’s ‘sharp reversal’ had played its part in dragging chip stocks lower.

‘SpaceX shedding over 30 per cent from its post IPO peak marks one of the most dramatic reversals ever seen in a newly listed mega-cap stock, dragging the whole technology sector down with it,’ he said.

Daniela Hathorn, senior market analyst at Capital.com, said sentiment around the world has been ‘dented by the sharp post-IPO weakness in SpaceX’.

She added: ‘The move seems to be a combination of profit-taking, valuation reassessment and the unwinding of extremely bullish positioning following one of the most anticipated listings in recent years.’