On Tuesday, global stocks faced a downturn, heavily influenced by a notable drop in technology shares. In Asia, South Korea's Kospi index, which is heavily weighted towards tech, fell by 10%, with major companies like SK Hynix and Samsung each losing over 12%. European markets mirrored this trend, with the Stoxx 600 index declining by 1.2%, and the technology sector within it dropping 3.2%.
Key players such as STMicroelectronics and ASMI saw their shares fall more than 7%. In the U.S., futures for the Nasdaq 100, which includes tech giants like Nvidia, Apple, Alphabet, and Microsoft, were down 2.7%. The iShares Semiconductor ETF also dropped by 5.9% in pre-market trading, with Intel, Micron, and AMD experiencing losses of 7.8%, 8.4%, and 6%, respectively. Nvidia's stock was down 3%.
Additionally, SpaceX shares continued their decline, falling 3.6% after a 16% drop the previous day. This widespread sell-off in tech stocks has contributed to a broader pullback in indices like the S&P 500 and Nasdaq Composite, as investors appear to be rotating out of high-profile stocks, including Amazon and Meta, which also saw declines in pre-market trading.
This situation highlights growing concerns about the tech sector's performance and its impact on overall market sentiment