* Rising bets on Fed hikes keep yen near 40-year lows

* Tech stocks including Nvidia ( NVDA ) and Tesla; South Korea's

Kospi plunges 10%

* Brent crude and gold both fall

(New throughout, udpates headlines and adds analyst comment)

By Amanda Cooper and Chibuike Oguh

NEW YORK/LONDON, June 23 (Reuters) - Global stocks fell on

Tuesday, dragged lower by a broad selloff in technology and

semiconductor shares as profit-taking set in and investors

braced for more aggressive Federal Reserve action on inflation.

On Wall Street, the tech-heavy Nasdaq led losses, with

semiconductor and some megacap stocks under pressure.

Nvidia ( NVDA ) fell 3% and Tesla dropped 5%, while

shares in SpaceX reversed early declines to trade up

1.6%. Chip stocks were down 7%.

The Dow Jones Industrial Average was up 0.06%, the

S&P 500 fell 1%, and the Nasdaq Composite

fell 1.6%.

"If you look at the technical indicators, the SOX was at its

most overbought level in the last three years so there's

definitely an element of expectations getting stretched, market

positioning getting stretched, and valuations getting

stretched," said Amanda Agati, chief investment officer at PNC

Asset Management Group.

European shares also declined, with the STOXX 600

down 0.51%, weighed by losses in semiconductor and

chip-equipment makers. The weakness followed declines across

Asia, where Seoul's KOSPI index plunged 10% in its

sharpest one-day drop since March. MSCI's gauge of stocks across

the globe fell 1.26%.

"Questions are once again being raised over AI

infrastructure spending, particularly as some corporate giants

plan to sell equity to help fund expansion," Trade Nation senior

market analyst David Morrison said.

"Time will tell if this is yet another 'buy the dip'

opportunity, or a harbinger of worse things to come."

OIL REMAINS BELOW $80 A BARREL

Oil prices remained subdued, with Brent crude holding below $80

a barrel as tanker traffic through the Strait of Hormuz

increased and physical market prices neared pre-conflict levels.

The U.S. agreed to waive sanctions on Iran for 60 days from

Monday after the first round of talks under a nascent peace deal

agreed last week on ending more than three months of war.

While lower oil prices would typically support equities,

investor focus has shifted to the inflation outlook and central

bank policy. Markets now expect the Fed to take a firmer stance

on inflation under Chair Kevin Warsh.

U.S. Treasury yields have surged in recent sessions, with

2-year yields - highly sensitive to rate expectations - hitting

16-month highs. On Tuesday, both 2- and 10-year yields were

modestly lower on the day at 4.20% and 4.48%, respectively.

Money markets show investors are close to fully pricing in a

rate rise by September. Against that backdrop, the dollar is at

one-year highs against a basket of currencies.

"The data to me does not suggest that they need to be

raising rates. It suggests they need to sit on pause for a while

and see if the Middle East-conflict driven inflation data

unwinds as a function of the negotiations and the deal," Agati

said.

YEN AT 40-YEAR LOWS

Money markets are now close to fully pricing in a rate hike

by September, helping push the dollar index to one-year

highs against a basket of currencies. The index was last up

0.32% to 101.33.

The dollar's strength has weighed heavily on the Japanese

yen, which hovered near 40-year lows at 161.53 per

dollar. The euro slipped below $1.14 to its lowest level

in a year as investors scaled back expectations for further

European Central Bank tightening.

Japanese Finance Minister Satsuki Katayama said she

discussed global financial markets with U.S. Treasury Secretary

Scott Bessent on Monday, a move analysts said could signal

rising risk of intervention to support the yen.

In Britain, the pound fell 0.35% to $1.3201 on the

10th anniversary of the Brexit vote. Sterling remained under

pressure after Prime Minister Keir Starmer said he would resign,

paving the way for what is expected to be a smooth political

transition to Andy Burnham.

Gold also declined, falling 1.5% to $4,127 an ounce

as higher rate expectations reduced the appeal of non-yielding

assets.

In cryptocurrencies, bitcoin fell 2.95% to

$62,475.67. Ethereum declined 4.12% to $1,661.63.