Sharp Tech Drops Pull Nasdaq Down 1.5% 06/23 09:35

   Stocks slumped on Wall Street Tuesday as a sell-off in big technology stocks 
spread from Asia back to the U.S. over worries about potentially higher 
interest rates by the end of the year.

   NEW YORK (AP) -- Stocks slumped on Wall Street Tuesday as a sell-off in big 
technology stocks spread from Asia back to the U.S. over worries about 
potentially higher interest rates by the end of the year.

   The S&P fell 1% and is coming off 11 weekly gains out of the last 12, led 
largely by technology stocks. The Dow Jones Industrial Average fell 97 points, 
or 0.2% as of 9:53 a.m. Eastern. The Nasdaq composite fell 1.5%.

   Markets throughout Asia fell, including a 10% slump for South Korea's Kospi. 
Stocks in Europe also slid.

   Technology stocks were the biggest weights on the market, especially 
companies that have seen their values surge amid the frenzy over artificial 
intelligence technology. Their pricey stock values give them more influence 
over the broader market's direction. The growing likelihood of interest rate 
hikes coming up this year has helped deflate the massive run-up in AI-related 
stocks in recent days as traders worry that the higher rates could hamper 
economic growth.

   Micron Technology slumped 9.4% and Nvidia fell 2.4%. Samsung Electronics 
slumped 12.3% in South Korea.

   SpaceX fell 1.8% in a continued reversal from the space exploration and 
artificial intelligence company's soaring stock debut less than two weeks ago. 
The company also plans to raise money through a bond offering, partly to fund 
artificial-intelligence development.

   Many technology companies have been spending heavily on AI technology. The 
potential for higher interest rates can stifle future spending and hurt prices 
for investments. The Federal Reserve has signaled that it could raise interest 
rates at least once before the end of the year. Wall Street is betting on a 
nearly 90% chance that the central bank will raise its benchmark interest rate.

   The yield on the 10-year Treasury fell to 4.48% from 4.51% late Monday. The 
yield on the 2-year Treasury fell to 4.19% from 4.24% late Monday. Bond yields 
remain high, though, amid worries about inflation.

   Oil prices eased amid negotiations between the U.S. and Iran to end their 
war. The price for a barrel of U.S. crude fell 1.1% to $73.07. The price for a 
barrel of Brent crude, the international standard, fell 1.2% to $76.97.