June 23 2026 – Global stock markets sold off sharply on Tuesday as a wave of selling swept through tech and semiconductor stocks, prompting investors to reassess some of the assumptions that have driven markets higher over the last two years.
This is the bearish analysis from Nigel Green of global financial advisory giant deVere Group as the sell-off stretched from Asia to Europe and Wall Street futures, with South Korea's tech-heavy Kospi index plunging 10%, dragged lower by losses of more than 12% in both Samsung Electronics and SK Hynix.
European markets followed suit. The pan-European Stoxx 600 fell 1.2% in early trading, while the Stoxx 600 Technology index tumbled 3.2%. Semiconductor stocks were among the hardest hit, with STMicroelectronics and Dutch chip equipment maker ASMI both falling more than 7%.
In the US, futures linked to the Nasdaq 100 dropped 2.7% ahead of the opening bell. Semiconductor stocks came under intense pressure, with Intel down 7.8% in pre-market trading, Micron falling 8.4%, AMD dropping 6%, and Nvidia losing 3%.
SpaceX extended its dramatic decline, falling a further 3.6% in pre-market trading after suffering a 16% slide during Monday's session.
The weakness follows a sharp rotation out of the so-called Magnificent Seven stocks, with Amazon and Meta continuing their declines in pre-market trading.
Nigel Green comments: “Markets are getting a cold shower.
“For the last two years investors have been willing to pay almost any price for the promise of AI-driven growth.
“Suddenly they're asking the questions they should have been asking all along. Where are the returns? How sustainable is the spending? And what happens if the global economy proves weaker than we expected?”
The sell-off comes as investors increasingly question whether the enormous sums being committed to AI infrastructure will generate sufficient earnings growth to justify current valuations.
Major tech companies have committed hundreds of billions of dollars to AI-related spending, from data centres and chips to software and cloud infrastructure.
Nigel Green says: “For a long time the market treated AI spending as unquestionably positive.
“Investors are now becoming more demanding. They want evidence that unprecedented spending will translate into unprecedented profits.”
He stresses that the market reaction goes beyond AI itself.
“This is bigger than just tech. The market is beginning to challenge a whole series of assumptions that have been supporting valuations.
“The belief that growth would remain strong. The belief that rate cuts would arrive smoothly. The belief that AI would quickly transform earnings. The belief that recession risks had largely disappeared.
“That's a whole load of optimism built into share prices.”
The current move reflects investors revisiting risks that many had largely pushed aside.
“The recession question is creeping back into conversations too. Economic growth is slowing in several areas. Consumers are becoming more selective. Businesses are being more careful with spending.
“Meanwhile, companies are continuing to commit vast sums to AI infrastructure.
“Investors are naturally asking whether those expectations remain realistic.”
He argues the sharp losses across semiconductor stocks are particularly revealing.
“Chipmakers sit at the centre of the AI story.
“If investors start questioning AI spending, semiconductor companies are among the first names to come under pressure, which is pretty much what we're seeing right now.”
The deVere CEO says the speed of the sell-off reflects how crowded the trade had become.
“The AI trade became one of the most crowded trades in global markets. When everybody owns the same stocks, the exit door becomes very small very quickly.
“A lot of today's selling is not about deteriorating fundamentals overnight, but investors reducing exposure to a trade that had become extremely one-sided.”
Despite the sharp declines, he does not believe markets are entering crisis territory.
“This is a reality check. It appears that investors are rediscovering something fundamental: earnings and valuations still matter, and economic cycles haven't been abolished.”
He concludes: “The market is marking down expectations.
“What we're witnessing now is investors demanding proof instead of promises.
“That shift can be uncomfortable, but it's ultimately healthy.”
deVere Group is one of the world's largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of offices around the world, more than 80,000 clients, and $14bn under advisement.