Global technology equities faced their most severe downturn since March on Tuesday, as a wave of liquidations swept through semiconductor manufacturers and broader tech names.
The selling pressure, which had been building after a strong rally in recent weeks, intensified sharply during the session, signaling a potential shift in market sentiment toward risk-off positioning.
The decline was not confined to US exchanges.
Selling pressure extended into Asian markets, indicating that the repricing is broad-based rather than a localized reaction to specific US-listed names.
Semiconductor stocks, which have been central to the artificial intelligence investment theme, faced the steepest declines, suggesting investors are rotating out of high-multiple growth assets amid concerns over valuation sustainability.
This move marks a significant test for the AI-driven rally that has dominated equity markets over the past year.