NEW YORK — Stocks fell on Wall Street Tuesday as a sell-off in big technology stocks spread from Asia back to the U.S. over worries about potentially higher interest rates by the end of the year.
The S&P fell 1% and is coming off 11 weekly gains out of the last 12, led largely by technology stocks. The Dow Jones Industrial Average, which is less influenced by technology stocks, rose 105 points, or 0.2% as of 12:10 p.m. Eastern. The Nasdaq composite fell 1.5%.
Markets throughout Asia fell, including a 10% slump for South Korea’s Kospi. Stocks in Europe also fell.
Technology stocks were the biggest weights on the market, especially companies that have seen their values surge amid the frenzy over artificial intelligence technology. Their pricey stock values give them more influence over the broader market’s direction. On Tuesday, more stocks were gaining ground within the S&P 500 than falling, but tech companies were overpowering gains elsewhere.
Micron Technology slumped 10% and Nvidia fell 3%. Samsung Electronics slumped 12.3% in South Korea.
SpaceX wavered in early trading and was most recently up 5.7%. The space exploration and artificial intelligence company had a soaring market debut less than two weeks ago. The company plans to raise money through a bond offering, partly to fund artificial-intelligence development.
The growing likelihood of interest rate hikes coming up this year has helped deflate the massive run-up in AI-related stocks in recent days as traders worry that the higher rates could hamper economic growth.
Those Big Tech gains have been significant, sending major indexes on record-setting runs throughout 2026. Within the S&P 500, the tech sector alone is up nearly 27% just over the last three months and roughly 18% for the year. In Asia, South Korea’s Kospi has nearly doubled so far in 2026.
Analysts have been warning that high-flying technology stocks could be due for a downturn.
