On Tuesday, the decline in technology stocks gained momentum, with the Nasdaq composite index dropping by 2.2%.
The trading day started off with a significant downturn, but stocks managed to stabilize briefly before revisiting their earlier lows during the afternoon session. Major players such as Intel, Nvidia, Oracle, and Tesla each plunged by 4% or more, following substantial losses from big tech companies on Monday. Additionally, Micron Technology, a semiconductor manufacturer that recently surpassed a market valuation of $1 trillion, saw a sharp decline of 13%, contributing to a 1.4% decrease in the S&P 500.
Meanwhile, SpaceX, which is in the midst of concluding a significant bond deal, initially fell below its post-IPO opening price of $150 but later rebounded to end the day at $156.11, breaking a streak of three consecutive losses. The Dow Jones Industrial Average remained relatively stable throughout most of the day, ultimately closing down by a mere 0.1%.
Oil prices have not been buoying stock markets recently, with Brent crude futures decreasing by 1.1%, equivalent to 82 cents, settling at $77.08 per barrel. This marks the lowest closing price since February 27, just before the onset of the U.S.-Israeli conflict with Iran. The drop in oil prices on Monday was attributed to positive developments in negotiations between Washington and Tehran.
The recent turnaround in artificial intelligence stocks has raised concerns, driven by fears regarding high expenditures by AI firms and anticipated interest rate hikes by the Federal Reserve. International markets experienced declines as well, with South Korea's Kospi index plummeting 10%, heavily impacted by difficulties faced by semiconductor companies, including Samsung Electronics.
