Chip stocks and high-flying tech shares plunge, sending the Nasdaq, S&P 500 lower
Chipmakers, artificial intelligence giants, and other highly valued tech stocks plunged Tuesday, dragging major US stock indexes deep into the red as the recent chip and AI complex comeback abruptly fizzled.
The Invesco QQQ Trust, which tracks the Nasdaq 100, is off around 3% on the day, and S&P 500 is down almost 2%.
The iShares Semiconductor ETF is also sinking, effectively giving up all the gains it saw yesterday as it surged to one of its best days of the year.
Wall Street initially opened in positive territory, but enthusiasm rapidly deteriorated midday as investors seemed to aggressively lock in profits on volatile, high-growth semiconductor stocks that, until recently, had been shooting upward.
This pivot follows a brutal trading day last Friday when momentum stocks collided with a rosy jobs report, profit-taking, and perhaps some very belated pessimism triggered by disappointing guidance from Broadcom, sending a host of previously bid-up names falling.
Many of those same shares are tumbling on Tuesday:
Micron completely flipped its intraday trajectory, plummeting over 9% at one point after gaining in early-morning trading. The memory provider has still more than tripled its valuation since the beginning of 2026. AMD shares also plummeted.
Marvell Technology jumped nearly 10% yesterday and advanced further soon after the opening bell, but reversed course midday and was down double digits, on pace for its second-worst day this year. The company was recently selected to join the S&P 500 Index effective June 22.
Intel is sinking after jumping in yesterday’s session on a report that Google and Nvidia are considering turning to the chipmaker as a backup supplier to TSMC.
Apple’s shares are selling down following the kickoff of its Worldwide Developers Conference yesterday, where it showcased the new AI-powered version of Siri and the trust and safety features of iOS 27.
The tech-driven slide overshadowed a positive macroeconomic buffer from the energy sector, with oil prices sliding. The relief in crude costs came after ongoing negotiations signaled that shipping traffic through the crucial Strait of Hormuz is normalizing, according to Reuters, though this drop was tempered by a threat from President Trump to retaliate against Iran for an attack on a US helicopter in the strait.
