Investors around the world are dumping tech stocks like they’re toxic cast members on Love Island. Tuesday continued a global sell-off in tech that may be a sign that traders have become skittish about the long-term profitability of AI and chipmakers.

The abandoning of the AI ship began in the US on Monday before spreading to Asia yesterday and resuming in the States after the other side of the world went to sleep:

• South Korea-based chipmakers SK Hynix and Samsung fell more than 12% yesterday, resulting in a 10% decline in the Korean Composite Stock Price Index.
• Magnificent Seven stocks finished down 1.5% as a group yesterday, with only Microsoft and Amazon showing a gain.
• Other US-based AI companies to take a hit included Broadcom (-3%), Micron (-13.2%), AMD (-5.8%), Intel (-6.1%), and Marvell (-9.4%).

What’s causing the sudden loss of confidence?

Much like a couple trying to decide what to have for dinner, no one has a definitive answer—but there are several plausible options.

Google/SpaceX dips: On Monday, both companies took big losses—Google dropped 5%, while SpaceX fell 16%. Some analysts believe that was enough to trigger the sector-wide selloff.

Interest rates: Most forecasters believe that the Fed will raise rates by at least a quarter-point this year. Bank of America predicted on Monday that there will be three hikes, totaling three-quarters of a point, in 2026. Higher rates could result in a deceleration of the heavy investing in AI technology that tech companies have planned in the coming years.

Spending. Investors periodically remember that they’re worried about the hundreds of billions of dollars that tech giants are investing in AI.

What’s next: JPMorgan analysts suggested that the anxiety could be related to Micron dropping its earnings report this afternoon. The chipmaker is expected to provide insight into whether the demand for AI infrastructure will remain high...or if the panic will continue.—DL

NYT: Zuck wants Meta to develop a prediction markets app. Meta CEO Mark Zuckerberg recently directed a team to create a prediction market app like Kalshi and Polymarket for smartphones, the New York Times reported yesterday. Per the outlet, users would likely not bet real money initially, but could eventually be allowed to place real wagers. Dubbed “Arena” internally, the app would reportedly be separate from Facebook, Instagram, and WhatsApp. The move is yet another attempt by Meta to capitalize on popular emerging technologies, following pivots to AI, the metaverse (RIP), and wearables (see below).

SCOTUS ruling limits corporate liability for human rights abuses. Yesterday, the Supreme Court ruled that members of the Falun Gong spiritual movement could not sue US-based Cisco for allegedly providing the technology that the Chinese government used to persecute them. Falun Gong, a controversial anti-communist movement with millions of practitioners (and the group that operates Shen Yun), had accused Cisco of customizing a surveillance system for the Chinese Communist Party to repress them, which the company denied. The court rejected Falun Gong’s argument that the case should move forward under an 18th-century statute. The ruling will likely make it difficult to sue companies for facilitating human rights abuses abroad.

Trump insists Iran agreed to allow UN to inspect nuclear sites. Despite Iran’s claims to the contrary, President Trump maintained that Tehran will allow UN nuclear inspectors into the country as part of an agreement with the US to end the war. “Iran has fully and completely agreed to highest level Nuclear inspections long into the future (Infinity!!!),” Trump posted on Truth Social yesterday, hours after Iranian officials denied making the concession. The conflicting narratives underscore what experts believe will be the hardest obstacle to overcome in talks: the fate of Iran’s nuclear program.—AE

As smart glasses slowly graduate from being a niche gadget geeks use, Big Tech companies are vying for the perch atop your nose. And market leader Meta just made a big change: The company unveiled a new set of smart glasses designed in-house without the Ray-Ban branding of its other models.

The new glasses’ $299 starting price is meant to be a cheaper alternative to the Ray-Ban- and Oakley-branded Meta specs that go for $379+. But they’re still produced in partnership with Ray-Ban’s parent company EssilorLuxottica and offer similar functionality, like a built-in camera and an audio-enabled AI assistant.

For now, the glasses come in three versions: Adventurer, Fury, and the slim ovoid Starfire designed by Kylie Jenner. Meta suggested it might later release a cheaper camera-less model with more style options.

Crowded nose bridge

Though Meta currently controls more than two-thirds of the market, its rivals want in:

• Snap released high-end glasses called SPECS last week for $2,195 (with questionable aesthetics).
• Google will start selling AI smart glasses designed by Warby Parker this fall.
• Apple plans to start shipping iPhone-pairing smart glasses next year.

There may be room for everyone: Market research firm IDC reported that smart glasses sales jumped 167% in Q1 of this year from 2025 and Meta said in April its daily smart glasses users had tripled since last year.—SK

There could be 100,000 people in a stadium booing the World Cup’s mid-half stoppages, but all it takes is one corporation that believes in advertisements. Fox is likely making hundreds of millions of dollars from TV commercials shown during the tournament’s new three-minute hydration breaks, The Hollywood Reporter reported this week.

Water to wine: These breaks could enable Fox to make back what it paid FIFA to be the tournament’s US broadcaster. According to The Hollywood Reporter:

• Fox could make at least $250 million, but possibly as much as $500–$600 million, from water break ads placed by companies like Nike, Adidas, and Coca-Cola.
• The English-language US rights for the entire tournament reportedly cost Fox between $400–$500 million.

ICYMI: Amid rising global temperatures, FIFA made water breaks mandatory for the 2026 World Cup for the first time ever, even at climate-controlled arenas, which some coaches have criticized as unnecessary.

Fans are furious. Many think the new stoppages kill the Beautiful Game’s traditional flow, and sometimes foil a team’s momentum. Match crowds have erupted into boos during the hydration breaks, which stadium DJs are trying to combat by blasting sing-alongs like “Mr. Brightside” and “Macarena.”

Despite the discontent, hydration breaks may stick around for future World Cups, FIFA President Gianni Infantino said yesterday.—ML

On Wednesdays, the Brew’s Sam Klebanov highlights a fascinating stock, commodity, or other asset that’s worth your attention.

Midjourney’s recently announced plan to branch out from AI-generated images into the medical spa business is boosting the stock of a company specializing in compact ultrasound devices.

Midjourney said last week that it’s developing a machine capable of creating a detailed 3-D map of your body in under 60 seconds while you’re submerged in a pool with tiny sensors. Shares of Butterfly Network, the company behind the tech that will power Midjourney’s scanner, have jumped 35% since the announcement last week:

• Massachusetts-based Butterfly makes handheld ultrasound devices powered by cutting-edge computer chips at a fraction of the cost of more traditional, bulky ultrasound machines.
• It expects to reap as much as $74 million in the next five years from Midjourney’s quest to make a cheaper MRI-imaging alternative.

Looking ahead…Midjourney plans to open its first spa with a body-scanning pool in San Francisco next year.—SK