Wall Street slid sharply Wednesday as tech stocks fell amid a surge in market volatility. The Nasdaq Composite dropped 2 percent, while the S&P 500 slipped 1.6 percent. Investors reacted to a backdrop of a looming $86 billion IPO from SpaceX, the most ambitious tech offering in history.

Tech giants beyond SpaceX felt the squeeze. Super Micro Computer plunged nearly 30 percent after revealing a $7 billion share sale, while chipmaker Micron fell 4.7 percent and memory firm Marvell Technology slid 5 percent. The sharp downturn echoed worries that AI‑driven rallies may be over‑valued as investors brace for a market correction.

Inflation data showed a 4.2 percent rise, the highest in three years, and President Trump’s threat to strike Iran pushed oil prices up to $93.10 a barrel. Brent crude climbed 1.8 percent, while U.S. West Texas Intermediate rose 2.1 percent. The volatility index jumped to 22.20, above its long‑term average of 20, causing to widen bearish bets on 500 futures.

With the market bracing for a flood of IPOs—SpaceX, Google, Meta, OpenAI, and Anthropic—volatility has surged. Investors are tightening risk appetites as the sector faces a potential correction. The sharp decline in tech and broader indices signals that the rally may have peaked, prompting a pullback that could reshape portfolio allocations for the next quarter overall.