Global Tech Selloff Deepens as Rate Hike Fears Rattle Markets

A wave of selling swept through global stock markets on Tuesday, June 23, 2026, as technology and artificial intelligence-related stocks tumbled on mounting investor fears of interest rate hikes later this year. The selloff, which began in Asia, spread rapidly to Europe and the United States, hitting high-flying tech companies that had driven major indices to record highs earlier in June.

In New York, the S&P 500 fell 1.4% to 7,365.46, while the tech-heavy Nasdaq composite dropped 2.2% to 25,587.04. The Dow Jones Industrial Average, which has less exposure to technology stocks, fared better, closing just 0.1% lower at 51,666.84. The Russell 2000 index of smaller companies declined 1% to 2,975.48.

Chipmakers were among the hardest hit, with Micron Technology plunging 13.2% and Nvidia falling 4.1%. In South Korea, Samsung Electronics tumbled 12.3%, dragging the Kospi index down 10% as it gave back some of its nearly 100% gains for the year. Despite the sharp decline, the Kospi remains one of the biggest winners in 2026, driven largely by the AI boom.

SpaceX, which had a spectacular stock market debut less than two weeks ago, fluctuated in early trading before closing 1% higher. The company is reportedly planning a bond issuance to help finance AI development, even as it defends a valuation of approximately $2 trillion after three consecutive days of losses.

Investor anxiety has been fueled by the growing expectation that the Federal Reserve will raise interest rates at least once before year-end to combat stubborn inflation. According to CME Group data, Wall Street now sees an 85% probability of a rate hike in 2026, up from 60% just a week earlier. Analysts warn that higher rates could slow economic growth and dampen corporate spending, particularly in capital-intensive AI and semiconductor sectors, which have seen massive run-ups in recent months.

Inflation has been intensifying throughout 2026, driven by the impact of tariffs and rising energy costs linked to the conflict between the United States and Iran. A forthcoming report is expected to show that inflation rose to 4.1% in May. Meanwhile, bond yields remained elevated, with the 10-year Treasury note yielding 4.50% and the 2-year note at 4.20%.

Despite the selloff, U.S. markets remain positive for the year: the S&P 500 is up 7.6%, the Dow has gained 7.5%, and the Nasdaq is up 10.1%. However, analysts like Brock Weimer of Edward Jones described the pullback as a “reasonable period of consolidation” after an extraordinary rally.

In other developments, Apollo Global Management has capped withdrawals from a major private credit fund as redemption pressures build, and the U.S. nuclear energy sector is gaining momentum, with Oklo’s CEO Jake DeWitte discussing next-generation reactors to power AI data centers.