Nasdaq Declines 2.21% to 25,587 as Tech Rout Int‌‌e‌nsi‌fi‌es; S&P 500 Drops 1.44%, Dow Fl‌‌at Ami‌‌d Fe‌‌d Jitters 

Mumbai, June 24: The US stock market recorded a significant sell-off on Tuesday, with the technology-dominated Nasdaq Composite (^IXIC) index leading the losses amid fears over high AI valuations and hawkish Federal Reserve expectations, triggering a broad-based retreat across global equities markets 

The Nasdaq ended the trading session at 25,587.04, having recorded a substantial drop by 579.56 points (-2.21%), whereas the benchmark S&P 500 (^GSPC) settled at 7,365.46, down 107.33 points (-1.44%). On the other hand, the Dow Jones Industrial Average (^DJI) displayed relative resilience, ending the session marginally lower at 51,666.84, a decline of just 45.87 points (-0.09%). 

The sell-off, which began during Monday’s session, intensified on Tuesday after the weaknesses in the technology sector spread from mega-cap stocks to memory chip makers and semiconductor companies. 

The market capitalisation of leading tech companies declined significantly, with the State Street Technology Select Sector SPDR ETF (XLK) declining 4.13% and the VanEck Semiconductor ETF (SMH) falling more than 6% drop, reflecting the depth of the rout in technology and chip-related stocks 

AI & Memory Sell-Off Hits Nasdaq Down: Nvidia F‌‌ails 4%, Micron Plummets 13% Ami‌‌d Valuation Concerns 

The tech sector was heavily affected by Tuesday’s market tur‌‌moil, with the high-flying artificial intelligence and semiconductors stocks facing huge losses. NVIDIA Corporation (NVDA), the AI chip leader, declined by 4.08%. Micron Technology (MU) dropped by 13.23%, to 1,051.17, recording one of the worst performances in the index and setting the stage for its earnings report. Advanced Micro Devices (AMD) fell 5.76%, and Intel Corporation (INTC) declined 6.14%, highlighting the widespread pressure across the chip manufacturing industry. 

The sell-off in memory chip stocks was particularly pronounced, with Sandisk Corporation (SNDK) tumbling 13.64%, erasing significant gains from recent sessions. Western Digital Corporation (WDC) declined 8.41%, while Seagate Technology Holdings (STX) shed 5.07%.  

Also Read: How to Invest in the US Stocks From India? 

The weakness extended to other semiconductor equipment manufacturers, with Applied Materials (AMAT) losing 8.57%, Lam Research Corporation (LRCX) dropping 9.36%, and KLA Corporation (KLAC) falling 9.17%. Arm Holdings (ARM) also recorded a sharp decline of 10.14%, reflecting the broad-based nature of the tech rout. 

The decline in semiconductor stocks was not confined to US markets. In Asia, South Korea’s Kospi Index (^KS11) plummeted 9.99% as memory chip leaders SK Hynix and Samsung Electronics each dropped over 12%, dragging the benchmark index to its worst session in recent memory. Japan’s Nikkei 225 declined 3.55%, breaking an eight-session winning streak, as global risk sentiment deteriorated sharply. 

Hawkish Fed Bets, Dollar Strength Fuel Tech Pullback: DXY Hits 101.39, Yields Rise 

Market weakness intensified due to expectations of a hawkish US Federal Reserve stance. The US Dollar Index (DXY) climbed to a 13-month high of 101.39, reflecting bets on a prolonged higher interest rate environment.  

A stronger dollar pressured risk assets, especially technology stocks sensitive to borrowing costs and rate changes. The 10-year Treasury yield stayed near 4.50%, affecting consumer lending and equity valuations. Uncertainty increased after Federal Reserve Chair Kevin Warsh reduced forward guidance, adding to market volatility and cautious investor sentiment. 

Private Tech Sentiment Sours: SpaceX Volatility, Alphabet Declines Highlight Broader Weakness 

The private technology sector also faced headwinds, with SpaceX (SPCX) experiencing significant volatility. The rocket company’s shares fell to as low as $147 during the session, below its IPO debut price of $150, before recovering to close at $156.11, up 0.98%. Despite the modest recovery, the stock remains approximately 26% below its post-IPO high of $201.80, reflecting speculative positioning and profit-taking in late-stage technology assets. 

Alphabet Inc. (GOOGL) extended its losses from Monday, declining 0.99% following concerns about high-profile AI talent departures at the company. Meta Platforms (META) fell 0.29%, while Tesla (TSLA) declined sharply by 5.75%, making it one of the worst-performing mega-cap stocks of the session.  

However, some technology names bucked the trend, with Microsoft (MSFT) rising 1.80%, Amazon (AMZN) gaining 0.61%, and International Business Machines (IBM) surging 5.07%, providing some support to the broader market. 

Defensives Shine as Investors Seek Safety: Consumer Staples Gain 1.7%, IBM Surges 5% on Upgrade 

Investors rotated from growth tech stocks into defensive sectors amid risk aversion. The S&P 500 Consumer Staples index rose 1.7%, led by Walmart (+1.91%), Johnson & Johnson (+3.36%), and Coca-Cola (+1.01%). Procter & Gamble gained 2.16%, Monster Beverage rose 0.76%, and Keurig Dr Pepper also advanced. Conagra Brands surged ~5% for its best day since October, while General Mills gained over 3%. Meanwhile, IBM jumped 5.07% to $263 after JPMorgan upgraded it to overweight, raising its target to $291, supported by AI adoption and quantum computing policy support. 

US-Iran Peace Talks Weigh on Oil, Gold Drops as Dollar Strengthens; Safe-Haven Demand Dwindles 

Geopolitical developments pressured commodities after the US issued a 60-day waiver on Iranian oil sanctions amid peace and nuclear talks. WTI crude fell about 1% to $73.30, while Brent traded at $76.80 as Strait of Hormuz supply concerns eased.  

Gold dropped nearly 1.3% to around $4,130, with August futures down 0.5% to $4,225.80, as a stronger US dollar reduced safe-haven demand. Deutsche Bank sees gold at $4,800 in Q4 but warns $3,800 if rate hikes rise. Bitcoin slipped to $62,300, while the US dollar index rose 0.4% to 101.40, extending pressure on assets. 

Individual Stock Movers: Micron, Sandisk Lead Losers; AMC Plunges 25% on Stock Sale 

Micron Technology (MU) fell 13.23% ahead of its Wednesday earnings report, pulling back from record highs as investors awaited signals on AI-driven memory demand. Sandisk (SNDK) dropped 13.64% to 1,963.60, becoming the worst performer in the S&P 500.  

Western Digital (WDC) declined 8.41% and Seagate Technology (STX) lost 5.07%, reflecting broad weakness across the storage sector. AMC Entertainment (AMC) plunged 25% to $2.08 after announcing a $200 million stock sale of 95 million shares to repay debt.  

Qualcomm (QCOM) slipped 7.96% on AI competition concerns and reports of a potential $4 billion Modular acquisition ahead of its investor day. 

Economic Data Signals Sluggish Growth: PMI at 52.2, US Business Activity Expands at 1% Annualised Rate 

US economic data showed modest growth, with S&P Global’s composite PMI rising to 52.2, a five-month high but still indicating slow expansion. Manufacturing PMI jumped to 55.7, beating estimates of 54.6 and marking a four-year high, while services PMI eased to 51.3, a four-month high.  

Chief Business Economist Chris Williamson said the data reflects an uneven economy, with strong manufacturing offset by weaker services. Overall activity suggests US GDP is growing at roughly a 1% annualised pace, with improving sentiment driven partly by easing Middle East tensions. 

 The technology sector is under pressure from high AI valuations, hawkish Fed expectations, and a strong US dollar. Upcoming Micron earnings and Fed commentary will guide sentiment on demand and policy, while defensive sectors may stay resilient amid continued market volatility. 

Source 

• https://www.nasdaq.com/ 
• spglobal.com/spdji/en/indices/equity/sp-500/ 
• https://www.dowjones.com/