Table of Contents
Topline
Some of the largest chip and memory stocks fueled a selloff across global markets, as analysts pointed to “anxiety” ahead of Micron’s earnings amid investors pricing in a steeper path for interest rates.
One analyst pointed to “nervousness” on the memory chip trade.
Copyright 2026 The Associated Press. All rights reserved
Key Facts
Nvidia headlined broader losses across the Nasdaq in premarket trading on Tuesday, sliding 2.8% as the index dropped 2.8%, followed by Intel (7.3%), AMD (7.2%), Broadcom (3.9%), Tesla (2.7%) and Alphabet (1.9%).
Both the Stoxx 600 and Germany’s DAX index dropped about 1% in Europe, with semiconductor Infineon (down 5.5%) weighing down the Frankfurt-based stock market.
In South Korea, the Kospi index plunged 10% as shares of Samsung and SK Hynix—the country’s two largest companies by market capitalization, respectively—plummeted more than 12% each.
JPMorgan analysts wrote Tuesday that a selloff may have been sparked by “anxiety” before Micron—whose shares fell more than 9% in premarket—reports earnings on Wednesday, as the memory chip maker is seen as a barometer for AI demand.
WedBush Securities analyst Dan Ives wrote there was “some added nervousness on the important memory chip trade” ahead of Micron’s earnings, noting the global stock market was experiencing a “gut check moment” as the AI-backed tech trade “remains in the third inning.”
Traders are now also pricing in interest rates increasing by 50 basis points by December, potentially rising to between 4% and 4.25%, after earlier projections of just one 25-basis-point hike last week, according to CME Group’s FedWatch tool.
what to watch for
Whether SpaceX’s losing streak persists on Tuesday. Shares of Elon Musk’s rocket maker stumbled another 2.6% in early trading after plunging by more than 16.4% on Monday, as a three-day decline for the stock all but wiped out its post-IPO gains. Another selloff for SpaceX could lower its shares below the debut trading price of $150, and Swissquote analyst Ipek Ozkardeskaya told Reuters the company’s decision to open bond trading may have revived concerns that tech companies may be spending too much on AI infrastructure.
key background
Investors appear to have grown increasingly worried that memory chip supply could outpace demand amid a surge in spending for AI infrastructure. Chip makers like Micron, Samsung and SK Hynix have ramped up production to meet the soaring demand from AI data centers. The global market has also been weighed down by rising oil prices during the war in Iran, which has driven up consumer prices and inflation in the U.S. to a three-year high.
