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Global Technology Stock Sell-Off Pushes Nasdaq Down 2% as Semiconductor Shares Decline Sharply
Photo: CNBC
2026-06-24 12:32   Business   10

Global Technology Stock Sell-Off Pushes Nasdaq Down 2% as Semiconductor Shares Decline Sharply

U.S.stock markets ended lower on Tuesday as a broad global sell-off in technology shares intensified, led by significant declines in semiconductor and memory-chip companies.The Nasdaq Composite dropped 2.21% to 25,587.04, while the S&P 500 fell 1.44% to 7,365.46.The Dow Jones Industrial Average was comparatively resilient, slipping just 0.09% to 51,666.84.

The downturn followed weakness in global markets, particularly in Asia, where South Korea's Kospi plunged nearly 10% and major technology names such as SK Hynix suffered steep losses.

In the United States, Micron Technology fell approximately 13% ahead of its earnings report, while Sandisk, Intel, AMD, Qualcomm, and other semiconductor-related companies also recorded substantial declines.

Technology-focused exchange-traded funds posted heavy losses as investors reduced exposure to AI-related stocks that had experienced strong gains earlier in the year.Despite the weakness in technology, defensive sectors attracted investor interest.Companies such as Walmart, Johnson & Johnson, Coca-Cola, Procter & Gamble, and IBM posted gains, helping limit broader market losses.

Analysts noted that enthusiasm surrounding artificial intelligence investments had led to crowded positioning in technology stocks, making the sector vulnerable to sharp pullbacks.

Additional market developments included concerns over Alphabet following prominent AI talent departures, weakness in SpaceX shares after its recent IPO surge faded, and AMC Entertainment's sharp decline after announcing a stock offering.Overall, investors appeared to rotate toward safer sectors while reassessing valuations and risks within the AI and semiconductor industries.

Full reading at CNBC

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