SpaceX Plunges Over $400 Billion as Tech Selloff Rattles Pre-Market Trading
SpaceX shares continued their steep decline in pre-market trading on June 23, shedding significant value after already recording the second largest single-session drop in market worth to trade below its listing price. The Elon Musk led rocket and AI company saw its stock fall by as much as 5% to approximately $147, positioning it close to slipping beneath a $2 trillion market capitalization.Steep Decline Signals Broader Tech Concerns
The downturn was driven by a general selloff across technology stocks. Nasdaq 100 futures were dragged lower, mirroring broader concerns about the sustainability of the ongoing artificial intelligence rally. SpaceX has now shed over $600 billion in value following three straight sessions of declines. Monday alone erased roughly $400 billion, marking the second largest one-day loss on record after a similar plunge by Nvidia Corp. last year.The stock fell to its lowest level since the first day of trading, despite still being up approximately 10% from its initial public offering price of $135. SpaceX is currently selling investment grade bonds as part of an expected massive borrowing spree aimed at funding its artificial intelligence ambitions.
Global Market Indicators Show Caution in Chip and Tech Sectors
The pre-market decline reflects a cautionary mood across global markets, particularly within the technology sector. Contracts on the Nasdaq 100 fell 2.6% by 5 a.m. in New York. Meanwhile, the S&P 500 futures dropped 1.4%. In Europe, the technology sub-index of the Stoxx 600 declined by 3.1%.A significant warning sign emerged from Asian markets as a sub gauge of technology shares tumbled, ending an eight day winning streak. South Korea’s Kospi Index fell more than 8%, triggering a circuit breaker. This sharp decline followed reports that SK Hynix Inc. is slowing the expansion of AI memory chip production and shifting focus to the cheaper commodity DRAM.
Chip Stocks Plunge as AI Rally Faces Scrutiny
The fall was mirrored by sharp drops in South Korean chip giants. Shares of both SK Hynix and Samsung Electronics Co. plunged more than 10%. The rapid decline in these key Korean chipbellwethers suggests investors are moving swiftly to lock in recent gains, which serves as a cautionary indicator for US technology stocks.The developments underscore mounting scrutiny regarding the health of the broader AI-related rally amid global market volatility.
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