Global tech stocks bleed as investors weigh AI risks, Fed's hawkish stance

Global tech stocks fell as investors weighed AI-related risks and a hawkish Federal Reserve stance, spreading a selloff that began in the US. In Asia, the KOSPI closed down 10% and Japan’s Nikkei ended nearly 3.5% lower on Tuesday, according to the report. Korean semiconductor leaders SK Hynix and Samsung dropped more than 12% as markets digested high AI valuations and higher deployment costs, while memory demand tied to the AI boom has also been driving up chip prices. US tech names including Alphabet, Meta, Amazon and Microsoft fell on Monday, as the prospect of rate hikes this year remained elevated. SpaceX, led by Elon Musk, fell 19% on Monday and its valuation was cited at USD 2 trillion after its blockbuster debut and maiden bond offering. European stocks also declined, with Stoxx 600 down more than 1%, and chipmakers Infineon and STMicroelectronics down 5.7% and 7.5%.