Overview
- U.S. stocks slumped Tuesday with the S&P 500 down 1.17% and the Nasdaq off 2.04% as technology led losses and the Philadelphia Semiconductor Index fell about 4%.
- Nvidia dropped roughly 3.5%, erasing more than $160 billion in market value, while Palantir sank about 8% despite topping quarterly estimates and raising guidance.
- Selling accelerated across Asia on Wednesday: South Korea’s Kospi plunged more than 6% intraday, Japan’s Nikkei fell about 4%–4.7%, and SoftBank slid over 14% as Samsung and SK hynix tumbled.
- Goldman Sachs’ David Solomon and Morgan Stanley’s Ted Pick told a Hong Kong summit that markets should be prepared for 10%–15% drawdowns, echoing earlier caution from JPMorgan’s Jamie Dimon.
- Enthusiasm from multibillion‑dollar AI commitments such as OpenAI’s $38 billion AWS deal was overshadowed by valuation concerns, mixed economic signals like a weaker ISM manufacturing reading, and earnings sensitivities that left futures pointing to further pressure.