NEW YORK, June 23 (ANI) — The sell-off in global technology stocks intensified Tuesday as investors grew increasingly cautious about the artificial intelligence boom, reassessing the sector’s soaring costs and long-term profitability.
The Nasdaq 100 extended its decline, opening more than 2 percent lower, with memory-chip giant Micron falling more than 11 percent. The S&P 500 dropped 1.6 percent, while the Dow Jones Industrial Average declined about 0.7 percent as investors weighed concerns over rising AI-related costs and a hawkish Federal Reserve outlook.
The technology-driven downturn that began on Wall Street on Monday spread across Asian markets Tuesday. South Korea’s benchmark KOSPI index fell nearly 10 percent, while Japan’s Nikkei declined 3.5 percent. South Korean semiconductor leaders SK Hynix and Samsung plunged more than 12 percent as enthusiasm surrounding AI-related stocks continued to fade.
SpaceX shares also extended losses, falling about 1.5 percent Tuesday and briefly dropping below the $150 level at which the company debuted on Nasdaq roughly two weeks ago. The decline pushed the company’s market valuation below $2 trillion. The stock had already fallen 16 percent on Monday.
The Elon Musk-led company, which made a high-profile market debut, is reportedly preparing to tap bond markets for additional funding as it seeks to expand its artificial intelligence initiatives and broader technology ambitions.
Rising AI costs have emerged as a major concern among investors. Many companies have reported the capital-intensive nature of AI development, while growing demand for memory chips has contributed to supply shortages and higher prices. At the same time, companies continue to spend heavily on computing infrastructure and data centers needed to train and operate advanced AI models.
Major technology firms, including Alphabet, Amazon, and Microsoft, have committed hundreds of billions of dollars to expand data center capacity, increasing scrutiny over whether future returns will justify the enormous investments.
Investors are also evaluating the possibility of at least two interest-rate increases by the Federal Reserve this year after the central bank delivered a hawkish message during its June policy review under Chair Kevin Warsh. Market participants are expected to closely monitor a key inflation report later this week for further clues about the Fed’s next move.
Attention also remains focused on energy markets after the U.S. government waived sanctions on Iranian oil and petrochemical exports Monday. Although a peace agreement between the United States and Iran is in place and negotiations on a longer-term accord continue, concerns persist that elevated energy costs and inflationary pressures could continue to weigh on the global economy. (ANI)
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