Technology stocks suffered a broad sell-off Monday, dragging the Nasdaq and S&P 500 lower amid deepening jitters over artificial intelligence spending. The Nasdaq tumbled more than 2% in early trading, according to The Washington Post, as the downturn spread from Asia to Wall Street.
The rout began overseas after memory-chip makers SK Hynix and Samsung plunged in a South Korea KOSPI sell-off, as reported by Barron's. That weakness quickly infected U.S. markets, with Micron Technology shares falling 12% in pre-earnings trading. The sell-off has been described as "unnerving" by The New York Times, reflecting a sharp reversal from months of exuberance around AI-related stocks.
Investors are now questioning whether the massive capital expenditures tied to artificial intelligence infrastructure can sustain recent valuations. The tech-heavy sell-off signals a potential shift in sentiment, as macroeconomic headwinds and supply-chain concerns weigh on the sector. The decline was broad: Big Tech companies across the board pulled the broader market lower, according to the Anchorage Daily News.
Market participants will be watching Micron's upcoming earnings closely for signs of whether demand for memory chips is softening. A weak report could intensify the sell-off, while any upside surprise might restore some confidence in AI-linked names. The broader S&P 500 also fell, underscoring the weight of technology stocks on the overall index.
Still, some analysts argue the pullback may be overdue. Bank of America raised its Micron target to $1,500 ahead of results, suggesting long-term optimism remains for leading chip makers.