Investors' risk preference has cooled down, and the selling wave of technology stocks continues to ferment. The Nasdaq fell more than 1.9%.

US stocks fell across the board on Tuesday, with a continued sell-off in technology stocks dragging down the Nasdaq index. Market concerns about the outlook for artificial intelligence (AI) infrastructure spending have resurfaced, coupled with the continued strength of the US dollar, leading to a slight cooling of investor risk appetite. At the time of writing, the S&P 500 Index fell more than 1.2%, the Nasdaq Composite Index fell more than 1.9%, while the Dow Jones Industrial Average fell slightly by 0.04%. On that day, the technology sector became the main drag on the market. Due to a significant pullback in the South Korean stock market, stocks related to AI storage and chips were under pressure. The South Korean KOSPI index fell by about 10% on Tuesday from its previous record high, marking the largest single-day drop in the history of the index and causing concerns about the overheating valuation of the global AI industry chain. Among the Nasdaq index components, stocks related to AI such as Micron Technology, Inc. (MU.US), SanDisk (SNDK.US), Teradyne, Inc. (TER.US), and Applied Materials (AMAT.US) led the declines. David Morrison, Senior Market Analyst at Trade Nation, said that the market is once again questioning the sustainability of the AI infrastructure investment boom, especially as some tech giants plan to raise funds through stock issuance to support large-scale expansion. "The market is reevaluating the outlook for AI infrastructure spending, especially as some large companies plan to raise expansion funds through equity financing," Morrison said. "Whether the future is another 'buying opportunity on the dip' or a harbinger of a larger correction remains to be seen." Meanwhile, the US dollar continued its recent strong performance. The US dollar index (DXY), which measures the US dollar against a basket of major currencies, rose to 101.33 on Tuesday, reaching its highest level since May 13, 2025. Market participants believe that after the Federal Reserve maintained interest rates last week and sent a hawkish signal, investors are still reassessing the future path of monetary policy, providing continued support for the US dollar. In terms of economic data, US business activity in June outperformed expectations. Data released by S&P Global, Inc. showed that the US June Composite Purchasing Managers' Index (PMI) exceeded market expectations, indicating that economic activity continues to expand. However, the manufacturing sector is not entirely positive. Data released by the Richmond Fed showed that the US June Richmond Fed Manufacturing Index fell more than expected, reflecting continued pressure on manufacturing activity in some regions. In the bond market, US bond yields fell slightly. The yield on the 10-year US Treasury bond fell by 3 basis points to 4.49%, while the yield on the 2-year US Treasury bond also fell by 3 basis points to 4.21%. Politically, the market continues to focus on the progress of negotiations between the US and Iran. According to media reports, the US and Iran have agreed to seek a formal agreement within the next 60 days, further enhancing market expectations for easing tensions in the Middle East. International oil prices continued to fall due to improved supply prospects. New York crude oil futures fell to around $73 per barrel, while Brent crude oil prices fell to around $77 per barrel. Analysts point out that under the influence of multiple factors such as the outlook for Federal Reserve policy, valuation adjustments in the AI sector, and political changes in companies like GEO Group Inc, short-term market volatility may continue to increase. Investors will closely monitor upcoming corporate earnings reports and subsequent economic data to assess whether tech stocks, especially in the AI industry chain, can regain favor with fund managers.