A global selloff in technology stocks began around June 22-23, 2026, originating in the US and swiftly spreading to Asia and Europe. [1, 2, 3, 4] South Korea's Kospi index plunged 10% on June 23 from a record high, prompting a 20-minute trading halt. [1, 2, 4] Shares of major South Korean chipmakers Samsung Electronics and SK Hynix each fell more than 10% during the selloff. [2, 4]
US markets saw sharp declines as well. S&P 500 futures dropped about 1.3%, while Nasdaq 100 futures plunged, wiping out over US$1 trillion in market value. [1, 3, 4, 5, 6] Japan's Nikkei index fell 3.55% and Hong Kong’s Hang Seng declined 2.05% on June 23 amid global tech weakness. [4] In contrast, Singapore's Straits Times Index bucked the trend with a 0.2% rise. [4]
Chip-focused stocks were hit particularly hard. Micron Technology and Sandisk shares fell steeply on June 23 but partially recovered on June 24 after Micron released earnings following market close. [4, 5, 6] Micron's stock had surged over 268% earlier in 2026 before dropping 13% amid the selloff. [5, 6] Micron's earnings report on June 24 was seen as a key test for sustaining the AI chip rally. [4, 5, 6, 7]
Investors voiced concerns about overvalued tech stocks and high debt-funded spending by hyperscalers fueling the downturn. Jian Shi Cortesi, fund manager at Gam Investment Management, said, "Many investors are sitting on large gains with their AI stocks, and any jitters could lead them to cut their position to lock in the gains. Right now tech stocks are also particularly sensitive to interest rate outlook and potential Fed rate hikes." [4] Jay Woods, chief market strategist at Freedom Capital Markets, commented, "We will all be looking at Micron since that is a representation of what we've seen in this rally. I think people are going to get the blowout quarter that they expect, but I don't expect the stock to continue to rise." [5]
The selloff came amid rising expectations among traders for a second Federal Reserve interest rate hike by the end of 2026, adding pressure on valuations. [5, 6] Geopolitical tensions in the Middle East involving Iran also weighed on market sentiment in late June. [4, 5, 6]
From June 25 through June 26, tech sector volatility continued. Major firms like Apple saw declines while chipmakers bolstered by strong earnings, such as Micron, showed resilience. [8] Ulrike Hoffmann-Burchardi of UBS advised investors to stay invested but diversify portfolios, noting how quickly market narratives can change. [8] Matt Maley from Miller Tabak added, "A few cracks have developed in the tech sector recently. Therefore, we believe it will be extremely important to watch how these hyperscalers trade going forward because if they continue to decline, it’s going to make it very tough for the rest of the market to advance." [8]
The S&P 500 remained on track for its strongest quarterly gain in six years despite tech volatility and interest rate concerns. [4, 6, 8]
The next major event in this cycle is the upcoming Federal Reserve policy meetings, where traders expect confirmation of the possibility of a second rate hike by end of 2026. [5, 6]
