Nasdaq 100 Plunges
The Nasdaq 100 sinks 2.4% as a global sell-off in semiconductor shares hammers the index, while the Dow Jones edges up 0.2%.
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. 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. 2%, or roughly 118 points, to 51,831 as its lighter chip exposure and heavier defensive tilt cushioned the blow. 4%, or about 739 points, to 29,608.
Within the Magnificent Seven stocks, NVIDIA Corp. 2%. 90. S.
9%. 2%. 4%. 3%.
Semiconductors Bleed As Defensives, Software Catch The Bid The session was a textbook defensive rotation. 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. 2% alongside the gold rout, and the Invesco WilderHill Clean Energy ETF (NYSE: PBW ) fell 3%. S. 2%.
The carnage in the VanEck Semiconductor ETF (NASDAQ: SMH ) read like a casualty list. Sandisk Corp. 5% to lead the Russell 1000, tracking the global memory-chip sell-off sparked by the KOSPI rout. Micron Technology Inc.
5% as the same memory-pricing fears collided with de-risking ahead of its quarterly results due after Wednesday’s close. Corning Inc. 9%, as an AI-optical supply-chain name in the broad semiconductor liquidation. ON Semiconductor Corp.
9% and Lam Research Corp. 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. 94% Bath & Body Works, Inc. 18% BellRing Brands, Inc. 83% Axon Enterprise, Inc.
04% Rubrik, Inc. 03% Tuesday’s Russell 1000 Top Losers Name % change Sandisk Cor p. 49% Micron Technology, Inc. 49% Corning Inc.
92% ON Semiconductor Cor p. 88% Lam Research Corp. 81%