NEW YORK — Global stock markets recoiled Tuesday in a broad sell-off led by technology shares, with sharp declines in semiconductor stocks rippling across Asia, Europe and the United States.
Major indexes in Asia posted some of the steepest losses. South Korea's Kospi index fell nearly 10 percent, dragged down by more than 12 percent declines in memory chip makers SK Hynix and Samsung Electronics, according to market reports. Japan's Nikkei 225 dropped 3.55 percent.
In the U.S., the tech-heavy Nasdaq Composite declined about 1.3 percent on Monday, extending losses into Tuesday trading, with the S&P 500 also lower. The sell-off intensified overnight as concerns over high valuations in artificial intelligence-related stocks weighed on investor sentiment.
European markets followed suit, with technology shares in the Stoxx 600 sub-index falling sharply. Chip equipment makers including ASML and others recorded notable declines amid the broader rout.
The moves come after a period of strong gains in tech stocks fueled by enthusiasm around AI. Recent trading has seen profit-taking and rotation out of some of the most richly valued names, with memory chip stocks particularly hard hit.
"Investors are reassessing the sustainability of the recent rally in certain tech segments," said one trader on the floor of the New York Stock Exchange, speaking on condition of anonymity as markets moved. Details on the full extent of Tuesday's losses remained fluid as trading continued.
Broader market indexes showed mixed performance, with some non-tech sectors demonstrating relative resilience. The Dow Jones Industrial Average managed modest gains in the prior session despite the tech pressure.
Analysts and market participants have pointed to stretched valuations in parts of the technology sector after significant run-ups earlier in the year. No single catalyst fully explained the coordinated global decline, though concerns over AI capital spending and chip sector momentum have surfaced in recent trading sessions.
As of late Tuesday in New York, U.S. futures indicated continued caution. Trading volumes were elevated in tech names, with details on closing levels and exact percentage changes subject to final market tallies.
The episode marks a notable pullback in global equities after extended advances, though major indexes remain substantially higher for the year overall. Markets will continue to monitor incoming economic data and corporate earnings for further direction.
