The AI trade wobbled again on Tuesday — and this time the shakes went global. Here's the full picture.

It started overnight in Asia, where a rout in memory-chip stocks sent Japan's Nikkei down 3.55%. That selling spilled into U.S. markets at the open yesterday, hammering semiconductors and dragging the tech-heavy Nasdaq down 2.21%. Even small caps slipped.

But this wasn't everyone running for the exits. The Dow, which holds few chipmakers, finished basically flat, and defensive sectors — consumer staples, healthcare, utilities — actually rose as money rotated toward safety. The technology sector, by contrast, sank 3.66%. That's a "flight to safety," not a wholesale panic.

Where things closed:

Dow 51,666.84 (-0.09%)

S&P 500 7,365.46 (-1.44%)

Nasdaq 25,587.04 (-2.21%)

Russell 2000 2,975.48 (-0.96%)

Oil fell to ~$73.

The deeper worry: big tech is pouring unprecedented sums into AI infrastructure, and investors are starting to ask when that spending pays off.

A couple of earnings stories underlined how the market trades on the future: FedEx beat but fell on soft guidance, and Carnival posted record results yet dropped on a weaker outlook. And Bank of America flipped its forecast, now expecting three rate hikes this year.

The one to watch: Micron — the memory-chip maker at the center of it all — reports tonight. Its outlook has become a referendum on whether the AI boom is still accelerating.

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