Stocks Get Hit by Tech Losses as AI Worries Spread: Markets Wrap

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June 23, 2026 - 14:31

5 minutes

(Bloomberg) — Global stocks slumped, with Nasdaq 100 futures falling 2.9%, as concerns about frothy valuations ignited a fresh bout of volatility following a two-month surge in risky assets. South Korea’s Kospi Index plunged 10% from a record high.Semiconductor manufacturers, many of which are riding triple-digit gains this year, recorded some of the steepest losses. SpaceX fell below its first-day opening price of $150 in premarket trading before paring the move. S&P 500 contracts slid 1.3%. Tech and mining stocks led a 0.9% drop in Europe.In Seoul, chip giants SK Hynix Inc. and Samsung Electronics Co. slumped more than 10%. Sandisk Corp. and Marvell Technology Inc. led a broader decline among chipmakers in US premarket trading. Chinese equities in Hong Kong entered a bear market.The pullback on Tuesday comes as Wall Street prepares to close out the first half of the year with some blockbuster gains after the Nasdaq 100 rallied 20% so far this year. But with worries mounting about whether all the AI spending is justified and South Korean regulators warning about the risks in leveraged exchange-traded funds, investors are saying it’s a good time to take some risk off the table.“Some of the recent performance in stocks has been highly speculative, fueled by a passion from retail investors for short-term gains,” Mark Dowding, chief investment officer for fixed income at RBC BlueBay Asset Management, told Bloomberg TV. “We may not like it this morning, but actually it’s healthy behavior.”Attention is now shifting to Micron Technology Inc.’s quarterly results on Wednesday after the stock rallied more than 300% since January. The company’s third-quarter revenue is forecast to surge 253.6% from a year ago based on Bloomberg consensus, with adjusted net income seen rocketing 789.7%.“The real test is Micron,” said Amanda Lyons, head of research at Energy Group Capital. “I would watch the rate of change in pricing and any change to capex or bit-supply guidance far more closely than the headline beat or miss.”Gold, silver and copper fell. Bitcoin headed for its biggest drop in more than two weeks. Treasuries found some relief as traders pared bets on Federal Reserve interest-rate hikes this year and next. The dollar neared its highest level for 2026.Brent fell for a second straight day, trading 0.8% lower at around $77.30 a barrel. Traders are taking comfort from signs that talks toward a permanent deal between the US and Iran got off to a hopeful start, with Washington issuing a 60-day license allowing Tehran to sell oil on the international market.SpaceX, meanwhile, is selling investment-grade bonds for the first time in what’s expected to be the start of a massive borrowing spree to fund the company’s AI ambitions following its record $75 billion IPO.For Benoit Peloille, chief investment officer at Natixis Wealth Management, the buildup in rate expectations after Kevin Warsh’s first meeting as Federal Reserve chair is a key factor behind tech’s recent volatility.“Markets are convinced that Kevin Warsh will take inflationary pressures seriously and bring inflation back toward its target, and tech — being a long-duration sector — is on the front line,” Peloille said. “Every rate hike acts like a withdrawal of liquidity.”Corporate News:Abu Dhabi’s MGX has raised close to $50 billion from regional and global investors to accelerate spending on artificial intelligence infrastructure and technology, according to people familiar with the matter. Oracle Corp. reduced its workforce by 21,000 employees in the past 12 months, a wider scale than previously known, including those whose jobs were eliminated by the use of artificial intelligence. Apollo Global Management Inc. is once again limiting withdrawal requests from its largest non-traded private credit fund for retail investors, as broader concerns about the asset class persist. Some of the main moves in markets:StocksS&P 500 futures fell 1.4% as of 8:29 a.m. New York time Nasdaq 100 futures fell 2.9% Futures on the Dow Jones Industrial Average fell 0.4% The Stoxx Europe 600 fell 0.8% The MSCI World Index fell 0.4% CurrenciesThe Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.4% to $1.1385 The British pound fell 0.3% to $1.3212 The Japanese yen was little changed at 161.50 per dollar CryptocurrenciesBitcoin fell 3.2% to $62,328.21 Ether fell 4.4% to $1,656.72 BondsThe yield on 10-year Treasuries declined two basis points to 4.49% Germany’s 10-year yield declined four basis points to 2.91% Britain’s 10-year yield declined four basis points to 4.77% CommoditiesWest Texas Intermediate crude fell 0.8% to $73.30 a barrel Spot gold fell 1.8% to $4,115.43 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Neil Campling, Subrat Patnaik, James Hirai and Julien Ponthus.©2026 Bloomberg L.P.