Tech Reversal: Nasdaq Drops 0.97% and S&P 0.26% on AI Sell-Off
SPGI•U.S. equity benchmarks saw sharp reversals Tuesday, with the Nasdaq Composite plunging 0.97% and the S&P 500 sliding 0.26% after early gains evaporated. Semiconductor stocks led declines as a chip index fell nearly 2% intraday, with Marvell Technology down 7.6% and Broadcom off 1.1%.
1. Market Reversal and Index Swings
The Nasdaq Composite opened higher but reversed sharply to end the session down 0.97%, while the S&P 500 fell 0.26% after dipping more than 2.2% intraday. The Dow Jones Industrial Average gained 0.17%, recouping earlier losses thanks to its lighter exposure to tech names.
2. AI and Tech Sector Declines
Investors rotated out of AI-related stocks following an extraordinary rally, triggering rapid sell-offs in tech names. The Nasdaq’s worst day this year occurred on Friday, and although markets rebounded Monday, Tuesday saw renewed profit-taking in the AI space.
3. Semiconductor Stocks Performance
A key semiconductor index dropped almost 2% intraday before paring losses, reflecting heightened consolidation. Major chipmakers were hit hardest: Marvell Technology plunged 7.6%, Broadcom fell 1.1% after missing chip revenue guidance, and an ETF tracking tech is down about 5% so far in June.
