Global stocks experienced a decline on Tuesday, primarily driven by substantial losses in the technology sector following a negative trading session on Wall Street. In Asia, the tech-heavy Kospi index in South Korea closed 10% lower, impacted by losses exceeding 12% for chipmaker SK Hynix and tech giant Samsung.
In Europe, the pan-European Stoxx 600 index fell by 1.2% in early trading, with the Stoxx 600 Technology index leading the regional losses at 3.2%. Chipmaker STMicroelectronics and Dutch semiconductor equipment maker ASMI both saw declines of more than 7%.
Futures tied to New York's Nasdaq 100 index, which includes companies like Nvidia, Apple, Alphabet, and Microsoft, lost 2.7% ahead of the regular trading session. In pre-market trading on Wall Street, the iShares Semiconductor ETF was down 5.9%, with individual chip stocks experiencing significant losses: Intel was down 7.8%, Micron lost 8.4%, and AMD was down 6%. Nvidia also saw a decline of 3%.
Additionally, SpaceX shares continued to fall, moving 3.6% lower in pre-market trading after a 16% drop during Monday's session. The broader tech sector pullback contributed to declines in both the S&P 500 and the Nasdaq Composite on Monday, with notable declines in the so-called "Magnificent Seven" stocks. Amazon and Meta experienced further declines in pre-market trading on Tuesday, shedding 1% and 0.7%, respectively.