The S&P 500 fell 1% on June 22, 2026, as a global tech sell-off intensified, with memory chipmakers like Micron and SK Hynix experiencing steep declines, according to CNBC and Yahoo Finance. The Nasdaq Composite dropped 1.5%, while Asian markets saw significant losses, including South Korea’s Kospi falling nearly 10% amid a rout in AI-related stocks.
Global Tech Sell-Off Intensifies
The sell-off began in Asia, where South Korea’s Kospi plummeted 10% after memory chip leaders SK Hynix and Samsung Electronics fell over 12%. The decline followed a 95% gain for the Kospi this year, marking a sharp reversal. Japanese markets also suffered, with the Nikkei 225 dropping 3.55%, breaking an eight-day winning streak. U.S.-traded Micron Technology shed 10%, while Sandisk and Seagate Technology fell 12% and 7%, respectively, as investors reassessed AI-related valuations.
“The AI beneficiaries are the sell-off, and I don’t think they’re expensive, but they’re crowded,” said Andrew Slimmon, a senior portfolio manager at Morgan Stanley, on CNBC. “It’s captured kind-of the zeitgeist of the momentum traders and when that happens, you’re going to have sharp sell-offs like we’re having. I’d argue it’s healthy.”
U.S. Markets Show Mixed Reactions
In the U.S., the S&P 500 closed down 1%, while the Nasdaq Composite fell 1.5% but recovered from a nearly 3% intraday plunge. The Dow Jones Industrial Average, less tech-dependent, edged close to flat. Defensive stocks like Walmart and Procter & Gamble rose, offsetting some losses. IBM gained 4% after JPMorgan upgraded its stock to “overweight.”
For more on this story, see Trump Signals Iran War, Stocks Plummet 1.3% Overnight.
SpaceX shares briefly erased post-IPO gains, while Micron’s earnings report on Wednesday drew heightened scrutiny. The chipmaker’s stock had surged to a record close on Monday before tumbling. “The sell-off in memory chips is a warning sign for the broader AI sector,” said a Yahoo Finance analyst, noting that demand for memory could be overestimated.
European Markets Suffer Sharp Declines
European shares fell sharply, with the Stoxx 600 down 1%. The Stoxx 600 Technology index dropped 3%, led by Dutch semiconductor equipment maker ASMI and chipmaker STMicroelectronics, both losing over 6%. The slump reflected global concerns about AI valuations and the sustainability of recent gains.
Meanwhile, U.S.-Iran peace talks saw progress, with Brent and WTI crude futures falling 1.5% after a 60-day oil sanction waiver. This development, however, did little to buoy equity markets, which remained focused on the tech sector’s turmoil.
What’s Next for the Market?
Analysts are divided on the long-term implications of the sell-off. Some argue the correction is necessary to reset overvalued AI stocks, while others warn of broader market instability. “The momentum traders are taking profits, but this could lead to a deeper correction if demand for memory chips wanes,” said a Yahoo Finance contributor.
This follows our earlier report, US Stocks Plummet After Stronger-Than-Expected May Jobs Report.
The upcoming earnings reports from Micron and Cerebras will be critical. If demand for AI infrastructure weakens, the tech sector may face prolonged pressure. Conversely, if companies like Intel and AMD show resilience, the market could stabilize. For now, investors are closely watching the interplay between AI innovation and macroeconomic factors.
“This isn’t just a tech issue—it’s a reflection of broader market psychology,” said Slimmon. “When momentum turns, it’s rarely gentle.”
CNBC and Yahoo Finance reported on the market developments.
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