US AI Stock Sell-Off Shakes Markets From Wall Street To Asia
2 56An anonymous reader quotes a report from The Guardian: A tech sell-off shook global markets on Tuesday as attention turned away from developments in the US war with Iran and toward the future of AI companies and chipmakers that have driven stock markets to record highs. The tech-heavy Nasdaq index closed 2.2% lower on Tuesday. The S&P 500 was also down by Tuesday afternoon, dropping 1.43% while the Dow remained steady. All three major US indices have hit record highs this year, riding off a rush of funding to support AI technology and infrastructure. Nasdaq is up 10% for the year, while the Dow jumped 6% so far this year, breaching past 51,000 points, and the S&P 500 is up 7.3%.
But some economists have warned that the influx of AI spending is a bubble reminiscent of the dot-com bubble that burst in the early 2000s. Seven tech companies make up 30% of the S&P 500's value. The heavy reliance on a single industry and a few key companies has some investors wondering if it's a matter of when, not if, there will be a burst. Those concerns have been heightened by signals from the Federal Reserve last week that it may increase interest rates, and therefore the cost of borrowing, in order to tackle rising inflation. Alphabet fell 5% on Monday. SpaceX plunged 16%. The selloff also spread to Asia, with South Korea's benchmark dropping 10% as SK Hynix and Samsung Electronics each lost more than 12%, while Japan's Nikkei 225 declined 3.5%.
2 comments
POP! (Score: 5, Funny)
by PhantomHarlock ( 189617 ) on Wednesday June 24, 2026 @02:03AM (#66207176)
...and nothing of value was lost.
B.S. Story - Insignificant Decrease (Score: 5, Interesting)
by JakFrost ( 139885 ) on Wednesday June 24, 2026 @04:25AM (#66207290)
Yeah the tiny little bump down is not the start of the AI bubble bursting, not just yet. The little blip on Tuesday got wiped out on Wednesday and it's back to normal with some reshifting of investments in Asia.
Except for SpaceX which is now dropping back to its $150 opening IPO price to the public. It's going to bounce back up but once again in insignificant single digit percentage increases which means that even with the upcoming increase just by a few percentage points, it makes no difference to retail investors since you can't swing enough volume to actually make a reasonable profit on it.
When I was younger watching the Dow Jones industrial average hit 10,000 was a massive event. And then it hits 20,000 followed by $30,000 and now it's at 51, 000. So if I took the money that I had when I was younger and working and saving money and just left it invested in that index? Or just a total stock index? Or even a technology index? I could have retired by now but that money got used on life and other things and and it didn't stay invested. So compound interest and all the growth in the last few decades didn't happen.