Wall Street opened lower on Tuesday as tech sell-off that began on Monday deepens globally. S&P 500 opened 1.54% lower at 7,358.50, tech-heavy Nasdaq Composite fell 2.21% at open to 25,598.41, and Dow Jones Industrial Average lost nearly 300 points and opened 0.59% lower at 51,428.06.
Tech stocks faced a sharp global sell-off, kicked off by a 1.3% drop in the Nasdaq on Monday driven primarily by Alphabet. The downward momentum quickly spread to Asia, where South Korea's Kospi led regional losses. Memory chip giant SK Hynix—a major player in the recent AI rally, plummeted over 12%. This dragged the overall South Korean benchmark down nearly 10%, paring back its massive 95% year-to-date gains. Meanwhile, Japan's Nikkei 225 fell 3.55%, snapping an eight-day winning streak.
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US chip and hardware stocks joined the global rout, led by a 12% plunge in Micron Technology and an 11% drop for SanDisk. Component supplier Seagate Technology also shed over 7%. Major chipmakers were hit equally hard, with Intel and Qualcomm both sliding 7%, while AMD closed down 6%.
“The risk-off trade reflects fear AI exuberance may be overdone,” Chris Low at FHN Financial told Bloomberg.
Johnson & Johnson, Microsoft Corp., Walmart and Procter & Gamble Co. shares were up nearly 2%. On the other hand, Nvidia Corp fell nearly 3% and Goldman Sachs Group Inc. fell over 1%.
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The currency front remained muted with Dollar Spot Index rising 0.2%, the euro fell 0.3% to $1.1392, and the Japanese yen was little changed at 161.49 per dollar. However, the British pound fell 0.3% to $1.3209.
Bitcoin, the largest traded cryptocurrency, fell 3.6% to $62,076.41.
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