tech rout – Global markets slid again on Tuesday, led by steep losses in technology after a weak Wall Street session. South Korea’s Kospi fell 10%, Europe’s Stoxx 600 Technology dropped 3%, and Nasdaq-100-linked futures pointed to further weakness—while SpaceX extended it
On the trading floor in New York, the mood had shifted before the regular session even began. By Tuesday morning, futures tied to the Nasdaq 100 were down 2.7%, and the pressure felt most acute in chips and AI-linked names.
The sell-off wasn’t limited to the U.S. Shares in Asia closed broadly lower by the end of the day’s trading. South Korea’s tech-heavy Kospi index finished 10% lower, pulled down by chipmaker SK Hynix and tech giant Samsung—both ending the session down more than 12%.
Europe followed with sharp declines. The pan-European Stoxx 600 shed around 1% by the afternoon, after being worse earlier in the day. Technology stocks drove the losses: the Stoxx 600 Technology index declined 3%. Chipmakers and semiconductor equipment companies took some of the biggest hits. with STMicroelectronics down more than 7% and ASMI down more than 7%.
In pre-market trading, the semiconductor complex was still under pressure. The iShares Semiconductor ETF fell 6.2%. and several individual chip stocks were marked down sharply: Intel was last seen trading 7.6% lower. Micron dropped 8.5%. and AMD was down by 6.2%. Chipmaking giant Nvidia was 3% lower.
Space also wasn’t spared. SpaceX shares extended their sell-off, moving 3% lower in pre-market trading after falling 16% during Monday’s regular session.
The weakness is part of a wider tech retreat that began earlier. A pullback in the wider tech sector dragged both the S&P 500 and the Nasdaq Composite lower on Monday. with investors rotating out of the so-called “Magnificent Seven” stocks. On Tuesday morning. some of those declines carried forward: Amazon and Meta’s drops extended into pre-market trading. with both companies’ shares shedding just over 0.7%.
Even as the charts looked grim. some investors pushed back against the idea that the market was sliding into something uncontainable. Tom Hulick. CEO of Strategy Asset Managers. told CNBC’s “Squawk Box Europe” he wasn’t concerned about a looming catastrophe. He said markets are “very fluid” right now and added. “I don’t think we’re anywhere near some type of catastrophic failure in the markets. There’s too much liquidity out there, and the earnings momentum is very strong right now.”.
He also linked the latest turbulence to the way massive investment cycles can distort valuations in high-spending sectors. “AI is going to continue to grow earnings for companies in years to come. When you have a capital expenditure in the trillions of dollars. it can throw valuations a little stratospheric for companies like SpaceX or even Anthropic. but who’s to say what’s going to change the world with some of these companies. and [what] they can do going forward.”.
Still, the timing matters for traders watching near-term earnings and spillover effects. In a note on Tuesday morning, Wedbush’s Dan Ives said the sell-off creates an opportunity for investors. He said the downturn would cause selling pressure and “white knuckles” for U.S. tech stocks as investors worry the “overheated KOSPI sell-off has a spillover impact to U.S. tech stocks.” He pointed to nervousness being amplified by Micron’s looming earnings report due on Wednesday.
Ives manages Wedbush’s AI Revolution ETF, with the fund’s top holdings including Micron, TSMC, ADM and Nvidia. In the note. he said. “Taking a step back we continue to believe that in this market we will continue to go through a number of ‘gut check moments’ in the tech trade as the AI Revolution remains in the 3rd inning… this morning is just another one of those moments.”.
The day’s moves turned a single regional slide into a global test of tech confidence. South Korea’s Kospi ended down 10%. Europe’s technology index fell 3%. and Nasdaq-100 futures pointed to further weakness—while pre-market declines kept chips. semiconductors. and AI-adjacent names front and center.
tech rout global stocks Kospi SK Hynix Samsung Stoxx 600 Stoxx 600 Technology STMicroelectronics ASMI Nasdaq 100 Nvidia Intel Micron AMD iShares Semiconductor ETF SpaceX S&P 500 Magnificent Seven Strategy Asset Managers Tom Hulick Wedbush Dan Ives Micron earnings
So is this why everything is so expensive now?
Tech rout sounds like the government broke the internet again. Didn’t SpaceX just go up like a month ago? Also chips dropping 10% like that feels fake somehow.
Wait they said Nasdaq-100 futures down 2.7% but then Europe was down like 1%? How can it be both bad and not bad. My cousin said AMD is “done” but I don’t even know what that means. I just think people are panicking for no reason.
This article is basically “stocks fell” again. Magnificent Seven rotation?? Half of those companies are like… tech, right? And now Intel, Micron, Nvidia all down, ok cool, so maybe we should’ve avoided AI anyway. Also why are they talking about SpaceX shares like it’s normal to have “SpaceX” stock doing 16% drops??