Nasdaq tumbles 2% as Alphabet, Amazon and Meta lead tech retreat

A global selloff in AI, chip and memory stocks hit U.S. and Asian equities as investors weighed higher-for-longer Fed expectations, doubts over AI returns and Micron earnings for demand signals.

35d ago

Fact Check

The CBS News primary report confirms the Nasdaq fell ~2.2% with a tech-led global selloff driven by AI spending concerns and higher rate-hike expectations, including global spread (Kospi -10%). 24/7 Wall St and BlockBeats confirm Alphabet, Amazon, and Meta leading declines on June 22. CryptoBriefing corroborates the 2.21% drop and rising rate-hike odds. The 'led by Alphabet, Amazon and Meta' framing fits June 22 most precisely; on June 23 itself Alphabet and Amazon moves were small, but the overall claim of a ~2% Nasdaq tech retreat on AI-spending and rate concerns is strongly supported.

Summary

U.S. and global technology stocks sold off sharply as investors cut exposure to AI-linked, semiconductor, storage and memory names amid expectations of two more Federal Reserve rate hikes this year, concern that heavy AI spending may not translate into profits, and caution ahead of Micron Technology’s earnings. Reuters said the Nasdaq fell 2.2% and the S&P 500 lost 1.4% in the latest U.S. session, while earlier weakness also pulled down major tech names including Alphabet, Amazon, Meta, Nvidia, Tesla and Oracle. The retreat spread through Asia, where Japan’s Nikkei 225 fell almost 4%, Hong Kong’s Hang Seng Index dropped 2% and South Korea’s KOSPI suffered an exceptionally sharp selloff driven by steep declines in Samsung and SK Hynix before attempting an uneven rebound the following day.

Terms & Concepts

PCE inflation data: A U.S. inflation gauge closely watched for signals on Federal Reserve policy.
de-risking: A pullback in investor exposure to assets seen as crowded or risky.
artificial-intelligence spending: Corporate investment in AI infrastructure, chips, software and related development.