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United States tech stocks slide as SpaceX IPO nears

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United States tech stocks slide as SpaceX IPO nears

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U.S. technology shares fell sharply on Wednesday, June 10, amid heightened volatility ahead of SpaceX’s planned initial public offering on Nasdaq. The Nasdaq Composite dropped 2 percent and the S&P 500 declined 1.6 percent, as investors reassessed lofty valuations in artificial intelligence–linked companies. SpaceX is expected to raise about $86 billion when its IPO opens for trading on Friday, June 12. The downturn unfolded against a backdrop of U.S. inflation hitting 4.2 percent in May, a three-year high, partly driven by rising fuel costs and Middle East tensions. Major tech and chipmakers led losses, while the VIX climbed above its historical average.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

May U.S. inflation hits 4.2 percent
Recent months fuel prices climb globally
Recent months Middle East tensions elevate risks
Wednesday Nasdaq Composite declines by 2 percent
Wednesday S&P 500 falls 1.6 percent
Wednesday VIX rises to 22.20 reading
Wednesday Super Micro announces $7 billion sale
Friday SpaceX IPO scheduled on Nasdaq

Why This Matters to You

The SpaceX IPO could shake up your investments. If you own tech stocks, you might see some volatility. Keep an eye on your portfolio. Consider talking to a financial advisor if you're unsure.

The Bottom Line

The tech market is feeling the SpaceX effect. With U.S. inflation on the rise, it's a bumpy ride for investors. Remember, investing is a long-term game. Don't make hasty decisions based on daily fluctuations. Worth forwarding if you know someone with tech stocks.