Nvidia, Micron Technology and AMD led a Tuesday technology sell-off that pulled the S&P 500-linked tech trade into a risk-off move and dragged the Nasdaq Composite down roughly 2.1%. Ines Ferre reported the drop as investors backed away after last week’s hawkish Federal Reserve message about inflation. That left technology holders facing sharp moves in names that had been leading the year.
Micron falls 13% before earnings
13% was Micron’s slide on Tuesday, a move that stood out even within a weak session for the Technology sector. Micron Technology was set to report earnings on Wednesday, and the stock’s drop came before that update rather than after it.
More than 4% was Nvidia’s decline, while AMD, Broadcom and Intel also fell. Alphabet slipped nearly 1%. The selling pressure pushed the Nasdaq Composite lower for a second consecutive session, showing that the broad index was not insulated from weakness in the largest AI-linked chip names.
Technology leads the decline
Tuesday’s move came even though Technology had been the best-performing sector year to date. That mismatch made the sell-off more notable: the group that had powered much of the recent advance also led the declines after last week’s Federal Reserve signal that inflation remains too high.
Recent weeks had brought all-time highs in the major averages as AI infrastructure spending kept demand alive for chipmakers and related stocks. Tuesday showed how quickly that trade can reverse when investors turn more risk-averse, even before a company-specific event like Micron’s earnings report lands.
AI stocks after Tuesday
16% was the prior-session drop in SpaceX stock, and it briefly dipped again on Tuesday before rebounding. The move added another sign that AI-linked names were still being sold first when sentiment tightened. If the weakness in AI-linked chip stocks continues after Micron’s Wednesday report, the pressure could stay concentrated in the same names that had carried the sector higher.
