Nvidia, Micron, Alphabet lead tech sell

Nvidia, Micron, Alphabet lead tech sell-off as AI trade cools

What happened: Nvidia (NVDA), Micron Technology (MU), and Alphabet (GOOGL, GOOG) led a tech sector sell-off in premarket trading on Tuesday.

What's behind the move: Investors shifted to risk-off mode, selling this year's market leaders after a hawkish Federal Reserve signaled last week that inflation remains too high.

The overall Technology sector (XLK) led the declines, dragging the Nasdaq Composite (^IXIC) lower and extending its losses for a second consecutive session.

Nvidia stock slipped 2%, while Alphabet also moved lower, extending the weakness across Big Tech from the previous session.

Micron, set to report earnings on Wednesday, tumbled more than 8% in a retreat from record highs.

What else you need to know: AMD (AMD), Broadcom (AVGO), and Intel (INTC) also declined as the hottest sector in the AI trade cooled off.

Technology has been the best-performing sector year to date, sending the major averages to all-time highs in recent weeks as the AI trade has taken center stage.

Expectations that the Federal Reserve may have to hike rates, along with the massive SpaceX (SPCX) IPO and expected public debuts from AI developers Anthropic (ANTH.PVT) and OpenAI (OPAI.PVT), have raised concerns about the market’s ability to absorb lofty valuations for AI companies.

SpaceX stock was under pressure for a fourth session in a row on Tuesday after sinking 16% in the prior session.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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