Nasdaq Falls Over 2% as Global Tech Sell-Off Weighs on Markets, Micron Leads Losses

The S&P 500 and Nasdaq Composite closed lower on Tuesday as the tech sell-off from the previous session intensified, driven by sharp declines in chip-related stocks and weakness across global markets.

The broad market S&P 500 dropped 1.44% to close at 7,365.46, while the tech-heavy Nasdaq Composite fell 2.21% to 25,587.04. Meanwhile, the Dow Jones Industrial Average edged down just 45.87 points (0.09%), ending at 51,666.84.

Markets recovered somewhat from session lows as gains in major tech names outside the semiconductor sector, including Microsoft and Amazon, helped limit losses. Defensive stocks such as Walmart, Procter & Gamble, and Johnson & Johnson also posted gains.

IBM surged 5% after receiving an “overweight” rating upgrade from JPMorgan. Shares of Sherwin-Williams and Merck also moved higher.

The Nasdaq had already declined 1.3% on Monday, mainly pressured by weakness in Alphabet. Selling pressure then spread across global markets, with Asia seeing steep losses.

KOSPI led the regional decline as SK Hynix plunged more than 12%. South Korea’s benchmark index, despite being up 95% this year, fell nearly 10%, while Japan’s Nikkei 225 dropped 3.55%, snapping an eight-session winning streak.

In the U.S., semiconductor stocks remained under heavy pressure. Micron Technology plunged 13%, while SanDisk also dropped 13%. Seagate Technology lost more than 5%.

Intel declined 6%, while Advanced Micro Devices and Qualcomm fell nearly 6% and 8%, respectively.

The Technology Select Sector SPDR Fund dropped 4%, while the VanEck Semiconductor ETF tumbled 7%. Meanwhile, SpaceX gained around 1%.

Alphabet extended its losses, slipping another 1% after falling 5% on Monday, as investors remained concerned over recent high-profile AI talent departures.