Investors around the world are selling off tech stocks: online

Global stock markets are falling due to a sell-off in the technology sector. Investors are once again questioning whether the major IT companies’ massive investments in artificial intelligence will pay off. We’re tracking market developments in this live feed.

11:42 CET: What's happening with the "Magnificent Seven" in New York's pre-market? All stocks are falling except for one:

11:30 a.m. CET: SpaceX stock futures are down 3%. Shares of Elon Musk’s space company have been falling for the fourth consecutive day. Yesterday, they plummeted by more than 16%, wiping $400 billion off the giant’s market capitalization. This is the largest single-day drop in market capitalization since Nvidia’s stock crash in January 2025, triggered by the release of the Chinese neural network Deepseek, according to the Financial Times.

“Everyone who wanted to buy SpaceX shares did so in the first few days after the IPO, and it seems that phase is largely over,” said Mike O’Rourke, a strategist at Jones Trading.

11:11 CET: A speed barrier looms over AI stock trading, said tech investor Dan Niles, founder of Niles Investment Management, in an interview with CNBC released yesterday. According to him, just a few months ago, companies were racing to ramp up their AI usage, encouraging employees to generate as many tokens as possible; but now, faced with rising costs, companies are shifting to cost-saving mode and realizing that it’s impossible to burn through their entire annual AI budget in just a few months. To finance the AI race, tech giants are forced to actively raise debt and equity financing. SpaceX, which recently went public, is issuing $20 billion in bonds.

According to Niles, he is reducing the proportion of “Magnificent Seven” stocks in his portfolio. The investor noted that the ultimate beneficiaries of all these massive AI investments are chipmakers—but he has also decided to reduce their share in his portfolio following a sharp rise in their stock prices.

10:57 CET: “Former market leaders appear to be losing ground. Investors are shifting into more defensive sectors that are less tied to AI and capable of generating more predictable cash flows,” wrote Chris Weston, head of the analytics division at Pepperstone, on social media platform X.

10:54 CET: The sell-off was triggered by doubts about whether tech giants—particularly Alphabet—will be able to justify their massive spending on AI infrastructure, according to Bloomberg. “This is a useful reminder that we’re still dealing with cyclical, market-driven businesses,” says Amanda Lyons, head of research at Energy Group Capital.

The market’s attention will now turn to Micron Technology’s quarterly earnings report, which is set to be released on Wednesday. The company’s stock has been the top performer in the Philadelphia Semiconductor Index since the start of the year, rising more than 300% since January. According to Lyons, key indicators for investors will include price trends, as well as any changes in forecasts for capital expenditures and memory chip shipments.

10:43 CET: Nasdaq 100 tech futures are down 2.7%, while S&P 500 broad-market index futures are down 1.5%. There are just under five hours left until the main session opens in New York.

In Asia, where trading has already closed, South Korea’s Kospi index led the decline, plummeting nearly 10%. Shares of memory giants SK Hynix and Samsung Electronics plummeted by about 13%. Japan’s Nikkei 225 index fell 3.6%, and Hong Kong’s Hang Seng index dropped 1.8%.

The European Stoxx 600 index is down 1.2%. The Stoxx 600 Technology index is down 3.2%, outperforming other sectors. Shares of semiconductor equipment maker ASML in Amsterdam are down 5.4%, while shares of chipmaker STMicroelectronics in Paris are falling by more than 7.5%.

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This article was AI-translated and verified by a human editor