Nvidia, Micron Technology, and AMD led a tech sector sell-off on Tuesday as investors shifted to risk-off mode following a hawkish Federal Reserve signal that inflation remains too high. The Technology sector dragged the Nasdaq Composite lower for a second straight session, with Nvidia slipping 3% and Alphabet falling nearly 1%. Micron tumbled as much as 11% before paring losses ahead of its earnings report on Wednesday, retreating from record highs. AMD, Broadcom, and Intel also declined, cooling the hottest AI trade that had sent major averages to all-time highs amid a boom in AI infrastructure investments. Concerns about the market's ability to absorb lofty AI valuations have been fueled by expectations of potential Fed rate hikes and upcoming public debuts of AI developers Anthropic and OpenAI.
Advanced Micro Devices Inc
Broadcom Inc
Alphabet Inc Class C
NVIDIA Corporation
Intel Corporation
Micron Technology Inc