US Stocks Slide Again on Chip Selloff; Micron Tumbles 13%

US stocks closed lower across the board on June 23 as semiconductor shares sold off and investors grew wary of the prospect of additional Federal Reserve tightening.

The Dow Jones Industrial Average fell 0.09% to 51,666.84 at the close on the New York Stock Exchange. The S&P 500 dropped 1.44%, while the Nasdaq Composite lost 2.22%.

Wall Street absorbed the shock from a sharp selloff in South Korea's memory-chip sector. The Kospi had tumbled about 10% a day earlier, while Samsung Electronics and SK Hynix, the world's two leading memory-chip makers, each slid about 12%, extending the Asia-led weakness into US trading.

Valuation concerns around the artificial intelligence sector and caution over elevated prices drove the Philadelphia Semiconductor Index down 7.6%. Micron Technology plunged 13.2% ahead of its earnings release. Qualcomm fell 8.0%, Intel dropped 6.1% and AMD lost 6.0%. Profit-taking also hit large-cap technology shares, with Nvidia down 3.6% and Tesla off 5.7%.

SpaceX snapped a three-session losing streak and rebounded. The stock rose $1.51, or 0.98%, to close at $156.11.

In foreign-exchange markets, the possibility of further Fed rate increases supported the dollar. The dollar index, which tracks the greenback against major currencies, rose 0.4% to 101.38, its highest level in a year. The dollar bought 161.56 yen, leaving the Japanese currency near its weakest level in 40 years. The euro also fell below $1.138, touching a one-year low.

The Cboe Volatility Index, known on Wall Street as the fear gauge, rose 2.23 points to 19.52, its highest level in more than a week.

Treasury yields declined. The two-year yield fell 5 basis points to 4.23%, while the 10-year yield slipped 2 basis points to 4.49%. Even so, the two-year yield remained near its highest level in 16 months.

Oil prices also fell. Brent crude settled 1.05% lower at $77.08 a barrel, while West Texas Intermediate dropped 0.88% to close at $73.21. Supply concerns eased after the US government granted a 60-day waiver on sanctions against Iran and tanker traffic through the Strait of Hormuz showed signs of resuming.

Noh Jung-dong, Hankyung.com reporter dong2@hankyung.com