US sharemarkets fell sharply on Tuesday as a global sell-off in semiconductor stocks gathered pace, dragging the technology sector lower and weighing on broader market sentiment.
The S&P 500 declined 1.44% to 7,365.46, while the Nasdaq Composite fell 2.21% to 25,587.04. The Dow Jones Industrial Average slipped 45.87 points, or 0.09%, to 51,666.84.
The sell-off was concentrated in chipmakers and artificial intelligence-linked stocks. Micron Technology plunged 13%, Sandisk fell 13%, Intel lost 6%, while Advanced Micro Devices and Qualcomm dropped almost 6% and 8% respectively.
The weakness followed heavy selling across Asian markets, particularly in South Korea, where memory-chip giant SK Hynix fell more than 12% and the Kospi Index dropped almost 10%.
Outside technology, defensive sectors provided some support. IBM rose 5% after receiving an upgrade from JPMorgan, while Walmart, Procter & Gamble, Johnson & Johnson, Sherwin-Williams and Merck also advanced.
Alphabet extended losses after Monday’s 5% decline, falling a further 1% amid ongoing concerns about high-profile AI talent departures.
Australian Market Outlook
Australian shares are expected to open higher despite the sharp decline on Wall Street, with futures pointing to a modest rebound after recent weakness.
S&P/ASX 200 futures are up 35 points, or 0.4%, to 8,787.
Local technology stocks may come under pressure following the global semiconductor sell-off, while broader market sentiment is likely to remain cautious amid rising volatility across AI-related shares.
The Australian dollar weakened overnight as the US dollar strengthened.
Investor attention today will be firmly on the release of May CPI data at 11.30am AEST, which could influence expectations for the Reserve Bank of Australia’s next interest-rate decision.
