Tech Selloff Puts $1 trillion at Risk as SpaceX Shares Slide
A sharp selloff in technology stocks threatened to erase more than $1 trillion from the Nasdaq-100’s market value on Tuesday, as investors grew increasingly concerned about high valuations and heavy spending on artificial intelligence infrastructure.
Nasdaq-100 futures fell nearly 3%, while major chipmakers led the decline. Shares of Micron, AMD, Intel and other semiconductor companies dropped sharply as investors reassessed growth expectations for the AI sector.
SpaceX, one of the market’s newest and most closely watched listings, extended its post-IPO losses. The company’s shares fell about 2% on Tuesday, bringing its valuation below the $2 trillion mark and wiping out more than $600 bn in market value since last week’s record-breaking debut.
Analysts said concerns over rising interest rates and the growing use of debt to finance AI-related investments have weighed heavily on technology stocks. Investors are also questioning whether massive spending by leading tech firms will generate sufficient returns in the near future.
The selloff spread beyond the United States, dragging down stock markets in Asia and Europe as traders reduced exposure to high-growth technology companies after months of strong gains.
