Nasdaq-Led Tech Selloff Spreads to Asia, Europe as Futures Fall for Second Day

Nasdaq futures fall for a second straight day

Micron, SanDisk and Intel lead broad semiconductor selloff

Concerns rise over debt-fueled AI spending

A technology-stock selloff triggered by Monday’s sharp drop in the Nasdaq spread across global markets on June 23, hammering heavyweight tech shares in South Korea and Japan before extending to European stocks and US equity-index futures.

In South Korea, SK Hynix and Samsung Electronics, which had led the market’s gains, slumped sharply. The Kospi fell 10%. Japan’s Nikkei 225 dropped 3.55%, while Kioxia, the chipmaker that had become Tokyo’s most valuable listed company, sank more than 14%.

European stocks also declined. The Stoxx Europe 600 fell 1.2% in early trading, while its technology index dropped 3.2%. STMicroelectronics and Dutch semiconductor-equipment maker ASML both slid more than 7%.

US stock-index futures fell for a second day. Nasdaq 100 futures dropped 2.7%, while S&P 500 futures lost 1.4%.

In premarket trading, the iShares Semiconductor ETF fell 5.9%, and individual chip stocks were also under pressure.

Micron and SanDisk fell about 7% and 8%, respectively. Intel and AMD dropped 7% and 6%. Alphabet, which tumbled the previous day on news that key talent behind Google’s artificial intelligence efforts had left the company, fell more than 2% again on June 23. Nvidia lost 2.9%.

SpaceX, which had slumped for three straight sessions after surging following its listing debut, opened lower again on June 23 before reversing higher.

After plunging 16% in regular trading the previous day, SpaceX turned higher in premarket trading around 7:30 a.m. Eastern and traded at $157 a share. The company lost $400 billion in market value in a single day on June 22.

Reuters reported that the possibility of higher US interest rates and concern over rising corporate AI spending were weighing on investor sentiment. Doubts about hyperscalers’ AI outlays, combined with elevated valuations and higher borrowing costs, were a main driver.

“This move is closer to a sentiment-driven correction than a fundamental shift in artificial intelligence or corporate earnings,” Daniela Hathorn, senior market analyst at Capital.com, said. “But it shows how dependent market leadership has become on a small group of growth-focused companies.”

Ipek Ozkardeskaya, senior market analyst at Swissquote Bank, said SpaceX is not yet included in the Nasdaq index. But bond issuance to fund heavy spending on AI and infrastructure is fueling concern that Big Tech companies are pouring too much money into AI infrastructure and taking on debt to do it.

Kim Jung-a, guest reporter at Hankyung.com, kja@hankyung.com