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US stocks fell Tuesday as tech and chip stocks deepened their losses amid a global rout – causing Elon Musk’s SpaceX to briefly dip below its IPO price.
The tech-heavy Nasdaq sank 1.5% and the S&P 500 fell 1% by about 10:55 a.m. ET, while the Dow Jones Industrial Average traded roughly flat.
SpaceX slid in the morning to as low as $148.86 a share – below the IPO opening price of $150 — before paring back losses and hitting $156.88.
Shares in Alphabet, Nvidia and Tesla fell 0.6%, 3.1% and 4.6%, respectively.
The iShares Semiconductor ETF plunged 7.3%, while chip-related stocks like Micron, Qualcomm, AMD and Intel fell 10.1%, 10.2%, 5.6% and 3.7%, respectively.
The global tech sell-off started Monday, with SpaceX falling 16% as investors panicked over news the rocket-launch firm could go on a massive borrowing binge to fund its AI spending spree.
The rout picked up steam overnight as chip-related shares tumbled in Asia and Europe, with South Korea’s Kospi leading the nosedive.
South Korean chipmaker SK Hynix closed the session down more than 12%.
In the US, the State Street Technology Select Sector SPDR ETF slid 3.4% Tuesday, while the VanEck Semiconductor ETF fell 6.3%.
“Clearly this [downturn] will cause selling pressure and white knuckles for tech stocks in the US this morning as investors worry the overheated KOSPI sell-off has a spillover impact to US tech stocks,” Wedbush Securities analyst Dan Ives wrote in a note Tuesday morning.
“Taking a step back, we continue to believe that in this market we will continue to go through a number of ‘gut check moments’ in the tech trade as the AI revolution remains in the 3rd inning … this morning is just another one of those moments.”
English (US)