U.S. Stocks Fall as Tech Shares Extend Losses

U.S. stocks fell Tuesday as technology and semiconductor shares extended losses that began the previous day.

Alphabet declined 0.6 percent, Nvidia fell 3.1 percent and Tesla dropped 4.6 percent. The iShares Semiconductor ETF fell 7.3 percent.

The sell-off followed sharp declines in Asian markets, where South Korea’s Kospi index closed more than 12 percent lower. European chip-related shares also fell overnight. SpaceX shares traded as low as $148.86 before recovering to $156.88, moving below and then above the $150 IPO price.

A Wedbush Securities analyst wrote that the downturn would create selling pressure for U.S. technology stocks as investors reacted to the overseas declines. The same note stated that the market would continue to experience periodic tests during the ongoing development of artificial-intelligence technologies.