US stocks fell sharply Tuesday amid a tech sector decline and a stronger USD, with the Nasdaq 100 leading losses.
Major US equity benchmarks closed sharply lower Tuesday, led by a 3.3% decline in the Nasdaq 100 as tech stocks retreated. The S&P 500 fell 1.4%, while the Dow Jones slipped 0.1%, weighed down by skepticism over the AI-driven rally.
The Philadelphia Semiconductor Index (SOX) dropped nearly 4%, reflecting broader weakness in chipmakers and large-cap tech. The USD strengthened to a fresh 2026 high, adding pressure on equities.
Market sentiment soured as doubts emerged about the sustainability of the recent tech surge, with investors reassessing valuations amid higher interest rate expectations.