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Published: 24 June 2026,06:03
Daily Market Analysis New
*The Nasdaq led Wall Street lower as technology and semiconductor stocks came under heavy selling pressure.
*Investors are reassessing whether AI-driven valuations and capital spending remain sustainable after a strong rally.
* A sharp decline in South Korea’s semiconductor sector sparked global risk aversion and spilled over into US technology shares.
US equity markets have experienced a sharp correction led by technology stocks, with the Nasdaq falling more than 2%, the S&P 500 losing around 1.4%, and the Dow Jones proving comparatively resilient. The sell-off reflects growing investor concerns that the powerful artificial intelligence-driven rally may have become overextended, particularly as higher interest rates raise financing costs and increase scrutiny of aggressive capital spending across the technology sector.
The weakness originated in Asia, where South Korea’s Kospi plunged roughly 10% amid heavy selling in semiconductor-related leveraged products tied to companies such as Samsung and SK Hynix. This negative sentiment quickly spread to US markets, triggering substantial declines across chipmakers and AI beneficiaries including Nvidia, AMD, Intel, Marvell, Micron, Sandisk, and other memory-related stocks. Micron’s earnings report has become a major focal point for investors, with markets looking for confirmation that AI-driven demand remains robust enough to justify elevated valuations and continued spending on next-generation infrastructure.
At the macro level, the Federal Reserve’s increasingly hawkish stance has compounded pressure on growth stocks by pushing Treasury yields higher and reducing the present value of future earnings. Investors have also questioned whether large technology companies are becoming overly reliant on debt and capital raising to finance AI expansion, particularly after several high-profile firms announced major fundraising initiatives. This has prompted rotation into more defensive sectors, helping limit losses in the Dow while consumer staples and other value-oriented industries outperformed.
Despite the recent volatility, the broader US economy remains relatively resilient, supported by strong business activity and healthy corporate fundamentals. However, near-term sentiment is likely to remain sensitive to upcoming catalysts including Micron’s earnings results, US PCE inflation data, and any further adjustments to Federal Reserve rate expectations. If inflation remains sticky and policymakers continue signalling tighter monetary policy, technology-heavy indices such as the Nasdaq may continue to face pressure even as non-tech sectors show greater resilience.
Technical Analysis
The Nasdaq is showing signs of short-term weakness after failing to sustain gains near the 30,580 resistance level. Price has broken below the key 29,610 support area and is now trading around 29,345, suggesting that bearish pressure is building following the recent rejection from all-time highs.Recent price action indicates a shift from the prior bullish structure into a corrective phase. The market formed a lower high near 30,580 before selling off sharply and is now testing the area below 29,610. Unless buyers can quickly reclaim this level, the breakdown increases the risk of a deeper pullback toward the next support zone.
Momentum indicators support the bearish outlook. RSI has fallen to around 32, approaching oversold territory and remaining below its moving average, reflecting weakening buying momentum. Meanwhile, MACD remains firmly in negative territory, with the MACD line below the signal line and the histogram continuing to print negative readings, indicating that downside momentum remains dominant despite the possibility of short-term oversold bounces. Overall, the short-term outlook has turned bearish following the breakdown below 29,610 and the deterioration in momentum indicators.
Resistance Levels: 29,610.00, 30,580.00
Support Levels: 28,535.00, 27,540.00
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