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A sharp sell-off in technology stocks swept global markets on June 24–26, 2026, triggered by mounting concerns that massive investments in artificial intelligence may not justify sky-high valuations. The tech-heavy Nasdaq fell about 2% on Tuesday, with chipmakers like Nvidia and Micron leading losses, while the impact spread from Wall Street to Asia and Europe Source: BBC; Source: larepublicaco.
Investors grew uneasy over the enormous capital spending plans of big tech firms. Alphabet, Amazon, Meta, and Microsoft alone plan to spend up to $720 billion this year on AI infrastructure Source: AP News. Alphabet announced it would raise $80 billion through stock sales to fund its AI push, while Amazon sold $54 billion in bonds Source: AP News. The news that OpenAI might delay its IPO added to anxiety, as did reports that chipmakers SK Hynix and Samsung are slowing some production Source: larepublicaco; Source: infobae.
The sell-off hit Asia hard, with South Korea's Kospi plunging 10% and Japan's Nikkei losing 3.55% Source: excelsiormx. European indices also fell: Paris lost 0.71%, Frankfurt 0.98%, and London 0.21% Source: euronewses; Source: infobae. On Wall Street, the S&P 500 dropped 1.44% and the Dow slipped 0.09% Source: portafolioco. Notably, the Russell 2000 rose 0.79%, suggesting some rotation into small caps Source: hoydo.
Analysts are divided. Some, like Angelo Kourkafas of Edward Jones, view the decline as a healthy pullback after a historic rally Source: excelsiormx. Others, such as Richard Reyle of Questar Capital Partners, warn that the market is now 'determining winners and losers' and that volatility may persist Source: larepublicaco. Upcoming earnings from Micron and other tech firms will be closely watched.
“The tech-focused Nasdaq index fell about 2% alongside international chipmakers, reigniting fears that dizzying market valuations have finally run out of momentum after a relentless three-month climb.”
“Just four companies — Alphabet, Amazon, Meta Platforms and Microsoft — plan to spend up to $720 billion this year, primarily on AI data centers.”
“The news that OpenAI might postpone its IPO affected the market negatively, and concerns grew as Samsung Electronics and SK Hynix prepare to announce investments worth hundreds of billions of dollars.”
“The South Korean Kospi was the hardest hit, with a 10% drop due to losses in semiconductor giants SK Hynix and Samsung.”
“The Nasdaq fell 2.21%, the S&P 500 dropped 1.44%, and the Dow Jones slipped 0.09%, with chip stocks like Micron losing 13.18% and Sandisk falling 13.64%.”
“JPMorgan pointed out that OpenAI's possible IPO delay raises concerns about 'the sustainability' of its infrastructure spending, given the delay in capital market financing.”