New Delhi, June 23 -- Wall Street's biggest tech companies saw heavy selling as investors have started questioning whether the AI-driven market rally had become too stretched.

The Nasdaq and the S&P 500 fell to over one-week lows on Tuesday, dragged down by sharp losses in semiconductor stocks as investors braced for a more hawkish Federal Reserve and scrutinised growing debt-funded AI spending.

If losses hold, the Nasdaq 100 would lose over $1 trillion in market value. Nvidia fell 3%, Alphabet shed 1.2%, and chipmakers Intel, Marvell Technology and Advanced Micro Devices fell between 6.2% and 8.7%.

Amid the broader tech selloff, SpaceX has emerged as the biggest talking point, with its stock slipping below its IPO opening price. The c...