US Tech Stocks Experienced Sell-off Yesterday, AI Performance Questioned and Chip Sector Suppressed by Dual Pressure of Rate Hike Expectations

BlockBeats News, June 24th. On Tuesday, US tech stocks experienced a new round of selling, with the Nasdaq Composite Index falling by 2.2% and the S&P 500 dropping by 1.4%. Storage chip stocks were hit hard — both SanDisk and Micron saw their prices fall by over 13%, despite their year-to-date gains still standing at 727% and 269%, respectively. The Nasdaq has seen single-day volatility of 1% or more for six consecutive trading days.

This round of decline was driven by two core concerns. First is the expectation of interest rate hikes: Federal Reserve Chair Powell clearly stated last week that interest rates may still rise this year to combat inflation, with the market largely pricing in expectations of two rate hikes this year. Second is the concern over AI business models: some AI companies have begun to lower product prices, combined with massive spending on data center construction, leading investors to reassess the industry's profit potential.

Lisa Shalett, Chief Investment Officer of Morgan Stanley Wealth Management, pointed out that AI models are tending towards homogenization, with users leaning towards choosing the lowest-cost solution. Industry competition will continue to intensify, making related business models more cyclical and more sensitive to interest rates. She also revealed that hedge fund clients in their prime brokerage business began actively reducing risk exposure last week.

This round of adjustments has synchronously affected the global market, with the South Korean Kospi index briefly plunging by about 10% on Tuesday, as retail leveraged trading was seen to amplify market volatility. It is worth noting that there is a clear internal differentiation within the market, with 6 of the 11 sectors in the S&P 500 index closing up. Essential consumer goods rose by 1.8%, healthcare rose by 1.4%, the Dow Jones index fell by less than 0.1%, and defensive sectors overall showed relatively stable performance.

Micron is set to release its earnings report on Wednesday, and the market is highly anticipating whether its performance can provide fundamental support for the chip sector.