{"id":14904,"date":"2026-06-10T10:33:52","date_gmt":"2026-06-10T10:33:52","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?p=14904"},"modified":"2026-06-10T10:33:53","modified_gmt":"2026-06-10T10:33:53","slug":"nasdaq-falls-chipmakers-rotation","status":"publish","type":"post","link":"https:\/\/lemonn.co.in\/blog\/market-updates\/nasdaq-falls-chipmakers-rotation\/","title":{"rendered":"Nasdaq drops over 2% as chip stocks slide again"},"content":{"rendered":"
\"Nasdaq<\/figure>\n\n\n

US equities reversed early gains to close lower on Tuesday as a renewed selloff in chipmakers pulled the Nasdaq Composite<\/strong> down more than 2%<\/strong>, even as most S&P 500<\/strong> constituents rose and oil prices eased on signs of cooling Middle East tensions.<\/p>\n\n\n\n

Market overview<\/h2>\n\n\n\n
Index<\/strong><\/th>Close<\/strong><\/th>Move & % Change<\/strong><\/th>Comments<\/strong><\/th><\/tr><\/thead>
Nasdaq Composite \/ Nasdaq 100<\/strong><\/td>approx. recent high<\/td>about -2.1% to -2.5%<\/strong><\/td>Chip stocks fell around 5%, reversing prior AI-led gains.<\/td><\/tr>
S&P 500<\/strong><\/td>approx. recent high<\/td>about -1.3%<\/strong><\/td>Declined despite most stocks rising, as tech weakness weighed.<\/td><\/tr>
Dow Jones Industrial Average<\/strong><\/td>approx. recent high<\/td>-279 pts (-0.6%)<\/strong><\/td>Fell as investors reassessed durability of AI rally.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Note: figures are approximate; final exchange data not available at time of publication.<\/p>\n\n\n\n

    \n
  • Chipmakers fell about 5%<\/strong>, erasing much of their recent rebound.<\/li>\n\n\n\n
  • The Nasdaq 100<\/strong> lost about 2% to 2.5%<\/strong>, led by technology and semiconductor stocks.<\/li>\n\n\n\n
  • The S&P 500<\/strong> slipped over 1%<\/strong>, with tech offsetting gains in other sectors.<\/li>\n\n\n\n
  • A rotation into economically sensitive stocks lifted most S&P 500 components.<\/li>\n\n\n\n
  • Investors questioned the sustainability of the recent AI-driven market rally.<\/li>\n<\/ul>\n\n\n\n

    Sectoral action and rotation<\/h2>\n\n\n\n
    Sector \/ Group<\/strong><\/th>Direction (approx.)<\/strong><\/th>Key Drivers<\/strong><\/th><\/tr><\/thead>
    Semiconductors \/ AI-related tech<\/strong><\/td>down about 5%<\/td>Profit-taking after sharp rebound from war-driven lows.<\/td><\/tr>
    Economically sensitive sectors<\/strong><\/td>up modestly<\/td>Benefited from rotation away from richly valued tech.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Note: figures are approximate; final exchange data not available at time of publication.<\/p>\n\n\n\n

      \n
    • Investors sold richly priced technology names and rotated into cyclicals.<\/li>\n\n\n\n
    • Most S&P 500 companies advanced despite the index closing lower.<\/li>\n\n\n\n
    • The rotation followed a strong one-day surge in AI and chip stocks.<\/li>\n<\/ul>\n\n\n\n

      Key movers<\/h2>\n\n\n\n
      Stock<\/strong><\/th>Sector<\/strong><\/th>Notable Factor<\/strong><\/th><\/tr><\/thead>
      Apple<\/strong><\/td>Technology<\/td>Fell nearly 2.5%<\/strong> after AI and software updates at developers conference.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

      Note: figures are approximate; final exchange data not available at time of publication.<\/p>\n\n\n\n

        \n
      • Apple\u2019s event was the final developers conference led by CEO Tim Cook.<\/li>\n\n\n\n
      • Investor reaction suggested caution on the company\u2019s AI roadmap.<\/li>\n<\/ul>\n\n\n\n

        Technical and futures backdrop<\/h2>\n\n\n\n
          \n
        • S&P 500 futures<\/strong> earlier gained about 0.4%<\/strong>, indicating tech-led strength pre-open.<\/li>\n\n\n\n
        • Nasdaq 100 futures<\/strong> rose about 0.8%<\/strong>, supported by chip stock recovery hopes.<\/li>\n\n\n\n
        • Dow futures<\/strong> added about 0.2%<\/strong>, pointing to broader resilience before cash trade.<\/li>\n\n\n\n
        • The intraday reversal highlighted fragile sentiment around AI-linked valuations.<\/li>\n<\/ul>\n\n\n\n

          Global cues and commodities<\/h2>\n\n\n\n
          Market \/ Asset<\/strong><\/th>Movement<\/strong><\/th>Notes<\/strong><\/th><\/tr><\/thead>
          WTI crude<\/strong><\/td>about -5%<\/strong><\/td>Fell below $90<\/strong>, trading near $86<\/strong> as supply fears eased.<\/td><\/tr>
          Brent crude<\/strong><\/td>slightly down<\/td>Drifted to around $93<\/strong> after giving up prior gains.<\/td><\/tr>
          Gold (spot)<\/strong><\/td>about -1.6%<\/strong><\/td>Dropped to around $4,280.30<\/strong> as risk appetite shifted.<\/td><\/tr>
          Silver (spot)<\/strong><\/td>about -5%<\/strong><\/td>Fell below $65<\/strong>, tracking broader metals weakness.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

          Note: figures are approximate; final exchange data not available at time of publication.<\/p>\n\n\n\n

            \n
          • Oil prices eased as Israel and Iran paused hostilities, reducing supply disruption fears.<\/li>\n\n\n\n
          • US officials indicated shipping through the Strait of Hormuz was rising meaningfully.<\/li>\n\n\n\n
          • The Strait remains effectively shut, keeping a risk premium in crude.<\/li>\n\n\n\n
          • US leadership signalled a possible peace agreement with Iran within days, while warning of renewed risks.<\/li>\n<\/ul>\n\n\n\n

            Macro and IPO pipeline<\/h2>\n\n\n\n
              \n
            • Investors awaited US CPI<\/strong> data on Wednesday and PPI<\/strong> on Thursday.<\/li>\n\n\n\n
            • A stronger-than-expected May jobs report reinforced expectations of another Fed rate hike.<\/li>\n\n\n\n
            • Inflation remains above the Federal Reserve\u2019s target, keeping policy uncertainty elevated.<\/li>\n\n\n\n
            • SpaceX<\/strong> is expected to list on Nasdaq with a reported valuation near $1.75 trillion<\/strong>.<\/li>\n\n\n\n
            • OpenAI<\/strong> has confidentially filed for a US IPO, adding to AI-related issuance.<\/li>\n\n\n\n
            • Market participants viewed AI pullbacks as buying opportunities, per one brokerage comment.<\/li>\n\n\n\n
            • “For now, the market narrative remains centred on artificial intelligence”<\/li>\n<\/ul>\n\n\n\n

              – “While concerns about valuations, inflation, and monetary policy persist, investors continue to view pullbacks in AI-related stocks as buying opportunities rather than signs of a broader trend reversal”<\/p>\n\n\n\n

              –<\/p>\n\n\n\n

              Frequently Asked Questions<\/h2>\n\n\n\n

              Why did the Nasdaq fall over 2% in the latest session?<\/h3>\n\n\n\n

              The Nasdaq declined more than 2% as chipmakers dropped about 5%, reversing a prior AI-led rebound and dragging broader technology shares lower despite gains in other S&P 500 sectors.<\/p>\n\n\n\n

              How did oil prices move and why does it matter for markets?<\/h3>\n\n\n\n

              WTI crude fell about 5% to below $90 as Israel-Iran tensions eased and shipping through the Strait of Hormuz showed signs of improvement, reducing supply risk and supporting sentiment in non-energy sectors.<\/p>\n\n\n\n

              What macro data are US equity investors watching now?<\/h3>\n\n\n\n

              Investors are focused on upcoming US CPI and PPI releases and a stronger May jobs report, which together could influence expectations of further Federal Reserve rate hikes and near-term equity valuations.<\/p>\n","protected":false},"excerpt":{"rendered":"

              US stocks fell as the Nasdaq dropped over 2% and chipmakers slid 5%, even as oil prices eased and most S&P 500 stocks advanced amid sector rotation.<\/p>\n","protected":false},"author":15,"featured_media":14905,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_ayudawp_aiss_exclude":false,"_ayudawp_aiss_summary":"US equities reversed early gains to close lower on Tuesday as a renewed selloff in chipmakers pulled the Nasdaq Composite down more than 2%, even as most S&P 500 constituents rose and oil prices eased on signs of cooling Middle East tensions. \"For now, the market narrative remains centred on artificial intelligence\". - \"While concerns about valuations, inflation, and monetary policy persist, investors continue to view pullbacks in AI-related stocks as buying opportunities rather than signs of a broader trend reversal\". -. The Nasdaq declined more than 2% as chipmakers dropped about 5%, reversing a prior AI-led rebound and dragging broader technology shares lower despite gains in other S&P 500 sectors.","_ayudawp_aiss_summary_provider":"extractive","_ayudawp_aiss_summary_hash":"3dc4e027fa82eeec23ef3731d152cf0ad836f492","footnotes":""},"categories":[512],"tags":[],"class_list":["post-14904","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-updates"],"blocksy_meta":[],"uagb_featured_image_src":{"full":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nasdaq-falls-chipmakers-rotation-banner.png",1200,640,false],"thumbnail":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nasdaq-falls-chipmakers-rotation-banner-150x150.png",150,150,true],"medium":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nasdaq-falls-chipmakers-rotation-banner-300x160.png",300,160,true],"medium_large":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nasdaq-falls-chipmakers-rotation-banner-768x410.png",768,410,true],"large":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nasdaq-falls-chipmakers-rotation-banner-1024x546.png",1024,546,true],"1536x1536":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nasdaq-falls-chipmakers-rotation-banner.png",1200,640,false],"2048x2048":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nasdaq-falls-chipmakers-rotation-banner.png",1200,640,false],"web-stories-poster-portrait":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nasdaq-falls-chipmakers-rotation-banner-640x640.png",640,640,true],"web-stories-publisher-logo":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nasdaq-falls-chipmakers-rotation-banner-96x96.png",96,96,true],"web-stories-thumbnail":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/nasdaq-falls-chipmakers-rotation-banner-150x80.png",150,80,true]},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/yudh\/"},"uagb_comment_info":0,"uagb_excerpt":"US stocks fell as the Nasdaq dropped over 2% and chipmakers slid 5%, even as oil prices eased and most S&P 500 stocks advanced amid sector rotation.","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/14904","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/comments?post=14904"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/14904\/revisions"}],"predecessor-version":[{"id":14906,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/14904\/revisions\/14906"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media\/14905"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=14904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/categories?post=14904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/tags?post=14904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}