Bubble or blasphemy?

• Micron Technology reversed all prior-day gains with a 13% drop before its earnings report, while the company's stock had surged more than 200% year-to-date on AI-driven memory chip demand
• Fed rate expectations diverged sharply after last week's policy meeting, with Bank of America forecasting no cuts through January while Citi still expects three cuts
• President Trump's approval rating fell to 34%, matching the lowest level of his second term, with only 22% approving his handling of cost of living issues

Market Summary: Tech Volatility Raises Bubble Concerns

Key Market Movements:

U.S. chip stocks experienced sharp volatility on June 24, 2026, with the Nasdaq falling over 2% on Tuesday. Memory chipmaker Micron Technology plunged approximately 13%, erasing previous day's gains ahead of its earnings report. The high-flying U.S. chip index, which had doubled year-to-date, faced its first major test amid stretched valuations.

Asian Market Impact:

South Korea's chip-heavy KOSPI index also declined sharply, contributing to broader Asian market weakness. Regional bourses and U.S. futures stabilized slightly overnight but remained under pressure.

Notable Corporate Developments:

• SpaceX: The rocket maker's stock fell significantly from its post-IPO peak in its first week of trading
• FedEx: Shares declined on margin concerns following Tuesday's earnings update
• Morgan Stanley and Apollo: Both reported withdrawals from flagship private credit funds, raising sector concerns

Economic Factors:

Federal Reserve rate expectations are pressuring tech valuations following last week's policy meeting. Bank of America and Citi diverge on rate cut forecasts through January, with disagreement on monetary policy trajectory. June U.S. business surveys exceeded forecasts.

Other Markets:

• Oil prices declined toward four-month lows (Brent crude below $76/barrel) on U.S.-Iran talks and increased Gulf shipping
• Dollar strengthened to 13-month high on rate-hike expectations
• Attention on potential Bank of Japan intervention as dollar approaches 40-year highs against yen

Political Context:

President Trump's approval rating fell to 34%, matching his second-term low, with cost-of-living approval at just 22%.

SoftBank CEO Masayoshi Son called concerns about an AI bubble "blasphemy," though market volatility suggests growing investor unease.