Pre-Market Panic: SpaceX Shares Plunge 16% as Tech Selloff Signals AI Rally Sustainability Fears
SpaceX shares saw extended declines in pre-market trading on June 23, continuing a sharp downward trend that has put the Elon Musk-led company under extreme pressure. The stock fell as much as 5%, reaching approximately $147. This significant drop places the rocket and artificial intelligence firm on track to fall below a $2 trillion market capitalization.SpaceX Hits Record Low After Massive Value Erasing Day
The decline follows a day where Monday's trading alone erased around $400 billion from the company's valuation. This marked the second-largest single-day loss on record, trailing Nvidia Corp.'s roughly $590 billion plunge last year.SpaceX has been shedding over $600 billion in value across three consecutive sessions. The stock reached its lowest level since its first day of trading after a 16% plunge. Despite the severe losses, shares remain up roughly 10% from the initial public offering price of $135.
Global Tech Stocks Face Instability Amid Chipmaker Selloff
The fall in SpaceX is set against growing concerns over the sustainability of the artificial intelligence-related market rally. A selloff in Korean chipmakers has stoked these anxieties, suggesting investors are rushing to lock in recent gains.In international markets, Nasdaq 100 futures dropped 2.6% as of 5 a.m. in New York. The S&P 500 futures also fell 1.4%. Furthermore, the technology sub-index of the Stoxx 600 registered a slide of 3.1% in Europe.
Korean Chip Stocks Signal Investor Concern Over AI Expansion
A sub-gauge tracking Asian technology shares tumbled, ending an eight-day winning streak. The sharp downturn was triggered by reports from local media regarding SK Hynix Inc. slowing expansion of AI memory chip production.SK Hynix and Samsung Electronics Co. each plunged more than 10% in trading. These dramatic drops in Korean chip bellwethers serve as a stark warning sign for US tech stocks generally. The news indicates that the firm is shifting focus toward the cheaper commodity DRAM rather than full-scale AI memory expansion.
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