(Updates headline and prices throughout, adds oil settlement and

analyst comment)

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

* Tech stocks including Nvidia ( NVDA ) and Tesladown sharply

* South Korea's Kospi plunges 10%

* Brent crude and gold both fall

By Amanda Cooper and Chibuike Oguh

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

Tuesday, dragged by a broad selloff in technology and

semiconductor shares as investors kept taking profits on a long

rally while bracing for more aggressive Federal Reserve action

to fight inflation.

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

semiconductor and some megacap stocks under pressure.

Nvidia ( NVDA ) fell 3.6% and Tesla dropped 5.7%.

SpaceX shares reversed early declines to trade up 2.5%.

Chip stocks were down 7.6%.

The Dow Jones Industrial Average was up 0.06%, the

S&P 500 fell 1.2%, and the Nasdaq Composite fell

1.9%.

"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 0.73%, 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 1.66%.

"This looks like a largely technical move, driven in part by

profit-taking ahead of Micron's earnings," said Ross

Mayfield, investment strategy analyst at Baird. "The trade has

been highly concentrated and flow-driven, which makes it

vulnerable to relatively small shifts in sentiment. In that

sense, it doesn't appear to be closely tied to the fundamentals

of the AI story, but rather to the heavy concentration and

strong inflows into tech and global tech over the past few

months now starting to unwind."

OIL REMAINS BELOW $80 A BARREL

Oil prices remained subdued, with Brent crude settling 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 4.23% and 4.49%, respectively.

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

0.37% to 101.38.

"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

The dollar's strength has weighed heavily on the Japanese

yen, which hovered near 40-year lows at 161.56 per

dollar. The euro slipped below $1.138 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 0.40% to $1.3194 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 1.6% to $4,122.69 an

ounce as higher rate expectations reduced the appeal of

non-yielding assets.

In cryptocurrencies, bitcoin fell 3.21% to

$62,310.38. Ethereum declined 4.29% to $1,658.42.