Tech stocks tumbled Tuesday as AI and semiconductor shares led the decline, with the sell-off beginning overnight in Asian markets where Samsung and SK Hynix each dropped 12%. Sandisk fell nearly 14% while Micron Technology, Arm Holdings and Marvell also posted sharp losses. The Nasdaq slid 2.2% and the S&P 500 dropped 1.4% as investors questioned massive AI infrastructure spending and revenue prospects.

Oracle disclosed it cut approximately 21,000 jobs in its last fiscal year, reducing headcount by about 13%. This workforce reduction reflects the broader trend among tech giants investing hundreds of billions in AI infrastructure. Meanwhile, Carnival shares slipped nearly 5% after issuing a cautious outlook amid higher fuel costs and disappointing quarterly results.

Space X reversed its recent slide, closing 1% higher at about $156 and snapping a three-session losing streak. The company finalized terms on a $25 billion bond sale as its valuation pressures ease. Avis Budget also gained attention, announcing it will collect $650 million from major shareholder Pentwater Capital Management to settle disputes over stock volatility.

The market turbulence echoes questions about the Fed Put legacy following Alan Greenspan's death at 100. Investors now debate whether central bank intervention remains guaranteed after inflation's post-pandemic return, creating uncertainty for tech valuations built on aggressive growth expectations.