Nvidia shares slumped 3.5% on Tuesday, the steepest one-day decline since 21 April, and closed below their 20-day moving average for the first time in almost four months. The drop erased part of the chipmaker’s AI-fuelled gains and pulled the tech-heavy Nasdaq 100 down 1.4%, ending Wall Street’s recent stretch of subdued moves. The overnight reversal rippled across Asia. Futures pointed to weaker starts in Tokyo and Hong Kong, and Japan’s Nikkei 225 fell as much as 1.5% to 42,889.86 after setting a record a day earlier. Australia’s ASX 200 slipped 0.2% and South Korea’s Kospi lost 1.0%. Selling was most pronounced in chip-related names, with SoftBank Group tumbling about 6% and test-equipment maker Advantest sliding nearly 5%. Investors are paring risk ahead of Federal Reserve Chair Jerome Powell’s appearance at the Jackson Hole symposium on Friday. With markets still leaning toward a quarter-point U.S. rate cut in September, the 10-year Treasury yield eased to roughly 4.30% and the dollar firmed, underscoring caution that the AI-led rally in megacap technology stocks may have run ahead of fundamentals.