Alphabet shares dropped 5% on Monday for their worst single day in over a year, while SpaceX fell 16% the same day after announcing a $20bn bond sale just two weeks after its IPO, with the sell-off then spreading to Asia on Tuesday where South Korea’s benchmark closed 10% lower after SK Hynix and Samsung Electronics both lost over 12%, Japan’s Nikkei 225 fell 3.5%, and the tech-heavy Nasdaq closed 2.2% down while the S&P 500 shed 1.43%. The sell-off coincides with revived fears that big tech’s AI infrastructure spending is a bubble and with Federal Reserve signals of possible interest rate rises; Morgan Stanley estimates AI-related borrowing will exceed $500bn this year. It follows the 4 June Broadcom-triggered rout and the 8 June broader tech fall, marking the third AI-anxiety-driven sell-off this month.
Context
It follows the 4 June Broadcom-triggered rout and the 8 June broader tech fall, marking the third AI-anxiety-driven sell-off this month.
