Overview
- Markets fell sharply on Tuesday as heavy selling in technology and memory chips pushed the Nasdaq down about 2.2%, the S&P 500 down about 1.4%, and the Dow down roughly 0.1%.
- Semiconductor names led losses with the Philadelphia Semiconductor Index plunging about 7.9% and major chip makers such as Micron, SK Hynix and SanDisk posting steep single‑day declines.
- Comments from Chicago Fed chief Austan Goolsbee warning that inflation is moving the wrong way increased wagers that the Fed will tighten policy, amplifying selling in rate‑sensitive, high‑valuation tech stocks.
- China announced reciprocal export controls and public‑procurement restrictions on multiple U.S. entities, a move that added supply‑chain and policy risk for defense, aerospace and advanced‑tech suppliers.
- Markets tried to rebound on Wednesday with partial gains in U.S. premarket trading and some Asian indexes recovering, but volatility remained high as investors awaited Micron’s results and the U.S. personal consumption expenditures inflation report.