Markets tumbled around the world on Tuesday, as renewed doubts about sky-high valuations appeared to take hold of investors in some of the largest AI, chip and memory stocks.Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive content.The deepening sell-off in technology stocks was led by artificial intelligence and chip stocks, starting overnight with two of Korea’s largest companies.Market sentiment was also also hurt by Elon Musk’s SpaceX, which has slid for days after a blistering June 12 debut on the U.S.market.
In earlier trading, shares fell as low at $147 before turning higher in volatile trading.This latest tumult was caused in part by worries over the sustainability of stunning surges in tech stocks and fears that rising inflation stemming from the Iran war and the closure of the Strait of Hormuz could lead to higher interest rates and more expensive borrowing for the ever-expanding global AI infrastructure buildout.Add NBC News to GoogleElon Musk’s Trillionaire Status Signals Growing Wealth Gap in US04:05Shortly after the opening bell rang on Wall Street, the Nasdaq Composite dropped 1.1%.The Nasdaq 100, the hundred largest non-financial stocks traded on the exchange, plunged 2%.
The S&P 500 slid 1.3%, while the Russell 2000, which tracks small and mid-cap stocks that often avoid the volatility in major tech stocks, was down 1%.The Dow rose slightly, but was held back from turning even higher by Caterpillar, Nvidia and Cisco shares, which were down more than 2.5%.Shares of Sandisk, Micron Technology, Western Digital, Marvell and Qualcomm all fell around 9%.Shares of Nvidia, the largest publicly-traded company in the world and a focal point of the AI boom, tumbled 3%.U.S.
government bond yields dipped only slightly across all durations, including the 10-year Treasury yield, which heavily influences consumer borrowing rates.Recent selling in SpaceX shares has wiped out more than $900 billion in value f...