Nasdaq 100 Plunges

U.S. stocks splintered Tuesday as a violent global sell-off in semiconductor shares hammered the Nasdaq, even as a rotation into defensive sectors and small caps kept the Dow Jones in positive territory through midday trading. • SanDisk stock is showing notable weakness.

What’s weighing on SNDK shares? The sell-off began overseas, where South Korea’s KOSPI index — as tracked by the iShares South Korea ETF (NYSE: EWY ) — plunged nearly 10% as investors dumped chip leaders Samsung Electronics and SK Hynix amid regulatory signals that the sector’s AI-fueled rally had run too hot.

Japan’s Nikkei 225 fell 3.6% and Hong Kong’s Hang Seng dropped 1.8%, setting an already risk-off tone before the open.

The message stateside was the same: traders are questioning whether the AI trade has overextended.

Concerns crystallized after Alphabet Inc. (NASDAQ: GOOGL ) slid roughly 5% on renewed scrutiny of heavy AI infrastructure spending, dragging megacap sentiment lower ahead of Thursday’s PCE inflation print and Micron Technology Inc. (NASDAQ: MU ) ‘s earnings on Wednesday.

The S&P 500 fell 0.9% to 7,403.94, while the Dow Jones bucked the trend, edging up 0.2%, or roughly 118 points, to 51,831 as its lighter chip exposure and heavier defensive tilt cushioned the blow.  The Nasdaq 100 took the brunt, sinking 2.4%, or about 739 points, to 29,608.

Within the Magnificent Seven stocks, NVIDIA Corp. (NASDAQ: NVDA ) led the declines, falling 3.2%.

The Russell 2000 fell just 0.7% to 2,984.90.

Tuesday’s Performance In Major U.S.

Indices Index Last % Change S&P 500 7,403.94 -0.9% Dow Jones 51,831 +0.2% Nasdaq 100 29,608 -2.4% Russell 2000 2,984.90 -0.7% Updated by 12:20 PM ET According to the  Benzinga Pro  platform: The  Vanguard S&P 500 ETF  (NYSE: VOO )  fell 0.9%.

The  SPDR Dow Jones Industrial Average ETF Trust  (NYSE: DIA )  edged up 0.2%.

The  Invesco QQQ Trust  (NASDAQ: QQQ )  slid 2.4%.

The  iShares Russell 2000 ETF  (NYSE: IWM )  slipped 0.3%.

Semiconductors Bleed As Defensives, Software Catch The Bid The session was a textbook defensive rotation.

The  Consumer Staples Select Sector SPDR Fund   (NYSE: XLP ) led all sectors, rising 1.7%, followed by the  Real Estate Select Sector SPDR Fund   (NYSE: XLRE ) , up 1.4%, and the  Health Care Select Sector SPDR Fund   (NYSE: XLV ) , up 0.9%.

Utilities, financials and energy also finished higher.

At the other end, the Technology Select Sector SPDR Fund (NYSE: XLK ) cratered 3%, its losses driven almost entirely by chips while software names held firm.

Industrials and consumer discretionary also slipped.

Among industry funds, the VanEck Gold Miners ETF (NYSE: GDX ) was the day’s biggest loser, down 3.2% alongside the gold rout, and the Invesco WilderHill Clean Energy ETF (NYSE: PBW ) fell 3%.

On the upside, the  SPDR S&P Insurance ETF   (NYSE: KIE ) gained 2.1%, the  iShares Biotechnology ETF   (NASDAQ: IBB ) rose 1.3%, and the  U.S.

Global Jets ETF   (NYSE: JETS ) added 1.2%.

The carnage in the  VanEck Semiconductor ETF   (NASDAQ: SMH ) read like a casualty list.  Sandisk Corp. (NASDAQ: SNDK ) plunged 11.5% to lead the Russell 1000, tracking the global memory-chip sell-off sparked by the KOSPI rout.

Micron Technology Inc.  sank 9.5% as the same memory-pricing fears collided with de-risking ahead of its quarterly results due after Wednesday’s close.

Corning Inc.  (NYSE: GLW )  dropped 8.9%, as an AI-optical supply-chain name in the broad semiconductor liquidation.  ON Semiconductor Corp.  (NASDAQ: ON )  fell 8.9% and  Lam Research Corp.  (NASDAQ: LRCX )  slid 8.8%.

Fellow chip-equipment and AI-infrastructure names took heavy hits too, including  KLA Corp.  (NASDAQ: KLAC ) ,  Applied Materials Inc.  (NASDAQ: AMAT ) ,  Marvell Technology Inc.  (NASDAQ: MRVL ) ,  Vertiv Holdings Co  (NYSE: VRT )  and  GE Vernova Inc.  (NYSE: GEV ) .

Crucially, the bleeding was a chip story, not a broader tech story: software held up and even rallied as money rotated within the sector.

Cloudflare Inc. (NYSE: NET ) rose 5% and ServiceNow Inc. (NYSE: NOW ) climbed 4%.

On the winners’ board, Rubrik Inc. (NYSE: RBRK ) rose 6% after Baird lifted its price target to $110 from $100 and reiterated an Outperform rating following results that topped all guided metrics.

On the earnings docket,  Carnival Corp.  (NYSE: CCL )  slumped 6% after reporting fiscal second-quarter results, while  FedEx Corp.  (NYSE: FDX )  and homebuilder  KB Home  (NYSE: KBH )  are scheduled to post after the close.

Tuesday’s Russell 1000 Top Gainers Name % change Viking Therapeutics, Inc. (NASDAQ: VKTX )   +9.94% Bath & Body Works, Inc. (NYSE: BBWI )   +7.18% BellRing Brands, Inc.   (NYSE: BRBR )   +6.83% Axon Enterprise, Inc.   (NASDAQ: AXON ) +6.04% Rubrik, Inc. +6.03% Tuesday’s Russell 1000 Top Losers Name % change Sandisk Cor p. -11.49% Micron Technology, Inc. -9.49% Corning Inc . -8.92% ON Semiconductor Cor p. -8.88% Lam Research Corp . -8.81%