Wall Street gave up more of its recent gains Tuesday after a sell-off in big technology stocks spread from Asia back to the U.S. over worries about potentially higher interest rates by the end of the year.
The S&P fell 1.4%. The benchmark index is coming off 11 weekly gains out of the last 12, led largely by technology stocks. The Dow Jones Industrial Average, which is less influenced by tech stocks, gave up an early gain and closed just 0.1% lower. The Nasdaq composite fell 2.2%.
Markets throughout Asia fell. South Korea’s Kospi index, a big winner in the AI boom, sank 10%. Stocks in Europe also fell.
The selling largely targeted companies that have seen their values surge amid the frenzy over artificial intelligence technology. Their pricey stock values give them more influence over the broader market’s direction. On Tuesday, more stocks gained ground within the S&P 500 than fell, but tech companies overpowered gains elsewhere.
Micron Technology slumped 13.2% and Nvidia fell 4.1%. Samsung Electronics slumped 12.3% in South Korea.