Stocks Hit by Tech Selloff as Korean Shares Plunge: Markets Wrap
(Bloomberg) — Global stocks slumped, with Nasdaq 100 futures falling more than 2.5%, as concerns about frothy valuations ignited a fresh bout of volatility following a two-month surge in risky assets. South Korea’s Kospi Index plunged 10% from a record high.
Memory stocks, many of which are riding triple-digit gains this year, recorded some of the steepest losses. SpaceX fell below its first-day opening price of $150 in premarket trading before trimming the move. S&P 500 contracts slid 1.2%. The tech sector led a 0.8% drop in Europe.
In Seoul, chip giants SK Hynix Inc. and Samsung Electronics Co. slumped more than 10%. Intel Corp. and Micron Technology Inc. led a broader decline among chipmakers in US premarket trading. Chinese equities in Hong Kong entered a bear market.
The pullback on Tuesday comes as Wall Street prepares to close out the first half of the year with some blockbuster gains, with the Nasdaq 100 riding a 20% rally so far this year. But with worries mounting about whether all the AI spending is justified and South Korean regulators warning about leveraged exchange-traded funds, investors are saying it’s a good time to take some risk off the table.
“Some of the recent performance in stocks has been highly speculative, fueled by a passion from retail investors for short-term gains,” Mark Dowding, chief investment officer for fixed income at RBC BlueBay Asset Management, told Bloomberg TV. “We may not like it this morning, but actually it’s healthy behavior.”
Attention is now shifting to Micron’s quarterly results on Wednesday after the stock rallied more than 300% since January. The company’s third-quarter revenue is forecast to surge 253.6% from a year ago based on Bloomberg consensus, with adjusted net income seen rocketing 789.7%.
“The real test is Micron,” said Amanda Lyons, head of research at Energy Group Capital. “I would watch the rate of change in pricing and any change to capex or bit-supply guidance far more closely than the headline beat or miss.”
Meanwhile, SpaceX is selling investment-grade bonds for the first time in what’s expected to be the start of a massive borrowing spree to fund the company’s AI ambitions following its record $75 billion IPO.
Brent held steady after hitting the lowest level since the first week of the war in the Middle East. Traders are taking comfort from signs that talks toward a permanent deal between the US and Iran got off to a hopeful start, with Washington issuing a 60-day license allowing Tehran to sell oil on the international market.
Gold, silver and copper fell. Bitcoin headed for its biggest drop in three weeks. Treasuries found some relief as traders pared bets on Federal Reserve interest-rate hikes this year and next. The dollar neared its highest level for 2026.
Corporate News:
Qualcomm Inc. is in advanced talks to acquire Modular Inc. in a transaction valuing the artificial intelligence infrastructure software company at about $4 billion, according to people familiar with the matter. Heineken NV appointed Rafael Oliveira chief executive officer, as the Dutch brewer breaks with habit by hiring an outsider to try to reverse a slump in demand. Oracle Corp. reduced its workforce by 21,000 employees in the past 12 months, a wider scale than previously known, including those whose jobs were eliminated by the use of artificial intelligence. Apollo Global Management Inc. is once again limiting withdrawal requests from its largest non-traded private credit fund for retail investors, as broader concerns about the asset class persist. Some of the main moves in markets:
Stocks
S&P 500 futures fell 1.2% as of 7:43 a.m. New York time Nasdaq 100 futures fell 2.6% Futures on the Dow Jones Industrial Average fell 0.5% The Stoxx Europe 600 fell 0.8% The MSCI World Index fell 0.4% Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.3% to $1.1393 The British pound fell 0.3% to $1.3215 The Japanese yen was little changed at 161.58 per dollar Cryptocurrencies
Bitcoin fell 2.9% to $62,506.34 Ether fell 4.2% to $1,659.59 Bonds
The yield on 10-year Treasuries declined two basis points to 4.49% Germany’s 10-year yield declined four basis points to 2.91% Britain’s 10-year yield declined four basis points to 4.77% Commodities
West Texas Intermediate crude rose 0.1% to $73.97 a barrel Spot gold fell 1.7% to $4,120.75 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling, Subrat Patnaik, James Hirai and Julien Ponthus.
©2026 Bloomberg L.P.
