U.S. stock trading opened sharply lower and then recovered somewhat, as a heavy selloff in memory-chip makers deepened doubts about the durability of the AI-driven rally. The Nasdaq, which is heavily weighted toward technology stocks, was hit hardest. It fell as much as 3% intraday before trimming losses to about 1.6% by the close. The S&P 500 lost roughly 1%, while the Dow Jones Industrial Average, with less tech exposure, edged up 0.1%.
Investors also watched Elon Musk’s space company, SpaceX, after three straight losing sessions. The stock dropped about 3% early in the day and briefly traded below $150, the price at which it opened on June 12 in its market debut, effectively erasing all gains since the initial public offering. Later in the session, however, it reversed sharply and ended up about 5%.
The main pressure came from Asia, where South Korean chip giants SK Hynix and Samsung Electronics fell more than 12%, dragging the local Kospi index down 10%. The plunge underscored growing concern that AI-sector valuations have become stretched and inflated, and put fresh focus on Micron’s results, due Wednesday. Micron shares fell as much as 12% during the session, a day after closing at a record high on Monday.
In commodities, signs of progress in U.S.-Iran talks helped push oil lower. Brent and WTI futures each dropped about 1%. The decline followed Washington’s decision to grant a 60-day temporary exemption from sanctions on Tehran’s oil, along with recent satellite data showing more tanker traffic through the strategic Strait of Hormuz.
