What triggered the recent selloff in global tech and chip stocks, and how did Apple's pricing announcement contribute to market volatility?

The selloff began with weakness in U.S. tech megacaps on Monday, initially attributed to concerns over sky-high AI capital expenditure; it broadened into chip stocks the next day, with Korea's KOSPI sliding nearly 10% and the SOX chip index shedding about 8%. Micron Technology's strong earnings briefly calmed markets, but Apple's Thursday announcement raising iPad and MacBook prices due to surging memory and storage chip costs reignited volatility—causing Apple's shares to fall over 6% overnight and triggering another Asian market selloff on Friday.

How do differing views on the AI investment boom reflect broader uncertainty about market sustainability, and what role might the Fed play amid this debate?

Opinions remain deeply divided: SoftBank's Masayoshi Son called talk of an AI bubble 'blasphemy against AI', while many Wall Street firms are raising year-end S&P forecasts, arguing the rally has more room to run; meanwhile, the late Alan Greenspan’s question about whether AI exuberance has become irrational looms large. Newly appointed Fed Chair Kevin Warsh appears unwilling to explicitly pop asset bubbles—continuing his predecessors’ stance—and though equity booms may fuel long-term growth, the Fed’s 'bubble blind spot' is a cause for concern; additionally, Warsh’s move to eliminate forward guidance has widened rate-expectation gaps among banks, likely increasing market volatility.

When the Chips Are Down and Up and Down

Jun 26, 2026

Global tech stocks and energy markets faced volatility as oil prices fell on Iran deal hopes and Apple raised device prices due to rising memory chip costs. Meanwhile, UK political shifts and US inflation data influenced investor sentiment ahead of key economic releases.

reuters

2026-06-26

When the Chips Are Down and Up and Down

2026-07-09

Markets remain long TACO

When the Chips Are Down and Up and Down

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