Global tech sell-off deepens as SpaceX leads decline amid inflation fears from Iran conflict

Steve Kopack

2h ago· 5 min readenNews

Summary

Global markets experienced a significant sell-off on Tuesday, driven by renewed doubts about the high valuations of major AI, chip, and memory stocks. The downturn was led by Elon Musk's SpaceX, which has been declining after a strong market debut. Contributing factors include fears that rising inflation from the Iran war and the closure of the Strait of Hormuz could lead to higher interest rates, making borrowing more expensive for the expanding global AI infrastructure. Nasdaq 100 futures also plunged amid the turmoil.

Source

bskyGlobal tech sell-off deepens as SpaceX leads decline amid inflation fears from Iran conflictnbcnews.com

Key quotes

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Markets tumbled globally on Tuesday, as renewed doubts about sky-high valuations appeared to take hold of shares in some of the largest AI, chip and memory stocks.

This deepening sell-off of leading technology stocks was led by Elon Musk's SpaceX, which has slid for days after a blistering debut on the U.S. market.

This latest tumult is caused in part by worries that rising inflation stemming from the Iran war and the closure of the Strait of Hormuz could lead to higher interest rates and more expensive borrowing for the ever-expanding global AI infrastructure buildout.