AI-linked tech stocks took another hit Tuesday, and the selling spread well beyond Silicon Valley. In the US, the Nasdaq dropped 2.21% while the S&P 500 fell 1.44% as investors sold chipmakers and other companies tied to the AI boom. The Dow, which has less tech exposure, was down about 0.1%.
Spillover into Asia
The sharper move came in South Korea, where the Kospi tumbled 10% and triggered a 20-minute circuit-breaker pause. SK Hynix and Samsung, two major memory-chip suppliers, each fell more than 12%, and the two companies make up about half of the Kospi’s total market value. Japan’s Nikkei 225 fell 3.6%, SoftBank dropped 15%, and most other Asian indexes were down more than 1%.
The source material does not point to one clear trigger. There was no obvious catalyst, though some analysts tied the move to worries about AI valuations and the possibility of higher US interest rates later this year. Chip stocks that had helped lead this year’s rally were among the hardest hit, with Nvidia down about 4%, Oracle off more than 5.5%, Micron down 13%, and Marvell down 9%. Even after the slide, the Nasdaq remained up 10% for the year and about 5.5% below its June 2 record high.
SpaceX added another example of how jumpy this corner of the market has become. SpaceX stock dipped to about $149 before rebounding to close up less than 1%, after debuting at $150 on June 12. The stock is still only 11% above its $135 IPO price, and the company has lost about $400 billion in market value from its recent peak. With Micron earnings due Wednesday and several future SpaceX share unlock dates still ahead, the next concrete tests are already on the calendar.
