The Nasdaq plummeted by more than 2%: the sell-off in tech stocks accelerated

Major U.S. stock indices plummeted at the opening on June 23—investors are bracing for a more hawkish stance from the Fed and are closely monitoring big tech companies’ rising AI spending, according to Reuters.

Against this backdrop, the broad U.S. stock index, the S&P 500, lost 1.56% in the first few minutes of trading; the tech-heavy Nasdaq Composite fell 2.39%; and the blue-chip Dow Jones index fell by 0.65%. The Russell 2000 index of small- and mid-cap companies was the only one to remain in positive territory, gaining 0.83%.

Bloomberg notes that among the stocks that fell during the broad sell-off were shares of semiconductor manufacturers—including companies that produce memory chips—as well as other firms involved in artificial intelligence. For example, on June 23, Micron lost 12% of its value, Intel lost 5.6%, AMD lost nearly 7%, and CoreWeave lost 4.8%. The Philadelphia Semiconductor Index plummeted by 7%.

Among the “Magnificent Seven” stocks, Tesla shares are suffering the biggest losses, falling 4%. Nvidia shares are down 2.68%, and Alphabet shares are down 0.78%. Amazon is up 0.47%, Meta Platforms is up 0.9%, Apple is up 0.86%, and Microsoft is up 1.53%. Shares of Elon Musk’s aerospace company SpaceX are down nearly 1%—trading around $153 per share—slightly higher than on the first day of trading after its IPO.

The VIX volatility index, also known as the “Wall Street fear index,” jumped by just over 17% on June 23—reaching a level above 20, a psychological threshold indicating heightened market volatility.

Oil prices are falling as U.S.-Iran talks progress: Brent contracts for August delivery are down 1.23% to $76.9 per barrel; July WTI futures are down 1%, trading at $73.12.

This article is being updated

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