Sharp drops in Big Tech companies pull stocks lower on Wall Street

Wednesday, 24 June 2026

Wall Street has given up more of its recent gains after a sell-off in big technology stocks spread from Asia back to the US over worries about potentially higher interest rates by the end of the year.

Markets throughout Asia fell. South Korea's Kospi index, a big winner in the AI boom, sank 10%. Stocks in Europe also fell.

Micron Technology slumped 13.2% and Nvidia fell 4.1%. Samsung Electronics slumped 12.3% in South Korea.

SpaceX wavered in early trading then closed 1% higher. The space exploration and artificial intelligence company had a soaring market debut less than two weeks ago. The company plans to raise money through a bond offering, partly to fund AI development.

The growing likelihood of interest rate hikes later this year has helped deflate the massive run-up in AI-related stocks in recent days as traders worry that the higher rates could hamper economic growth.

Analysts have been warning that high-flying technology stocks could be due for a downturn.

“Viewed through this lens, a period of consolidation is reasonable, in our view, after such a sharp move higher,” wrote Brock Weimer, investment strategy analyst at Edward Jones, in a research note.

Many technology companies have been spending heavily on AI technology. The potential for higher interest rates can stifle future spending and hurt prices for investments.

The Federal Reserve has signalled that it could raise interest rates at least once before the end of the year. Wall Street sees an 85% chance that the central bank will raise its benchmark interest rate this year, according to date from CME Group. That's compared to 60% a week earlier.

The yield on the 10-year Treasury slipped to 4.50% from 4.51% late Monday. The yield on the 2-year Treasury fell to 4.20% from 4.24% late Monday. Bond yields remain high, though, amid worries about inflation.

Inflation has been heating up throughout the year. The impact from tariffs helped halt and reverse what had been an easing of inflation growth.

The US war with Iran quickly pushed energy prices higher, including gas prices. Higher energy costs have also made shipping more expensive for a wide range of goods, and that has been weighing on businesses and households. A report due Thursday with an inflation measure that is preferred by the Fed is expected to show that inflation rose to 4.1%, in May.

Oil prices have eased amid negotiations between the US and Iran to end their war. The price for a barrel of US crude for August delivery fell 0.9% to settle at US$73.21. The September delivery price for a barrel of Brent crude, the international standard, fell 0.9% to settle at US$76.80. Prices are still above levels of roughly US$70 per barrel before the war began.