S&P 500 and Nasdaq Weaken, Chip Rally Loses Steam
US stocks closed lower on Tuesday (June 9), with the S&P 500 down 0.26% and the Nasdaq down 0.97%, while the Dow rose 0.17%. The main pressure came from the semiconductor sector, which fell again after rallying the previous day.
The iShares semiconductor ETF fell more than 3%, after rebounding 6% on Monday. Chip stocks were dragged down again: Micron fell nearly 5% after a 10% surge the previous day, while Broadcom fell more than 2% as its rapid rebound lost momentum. The market remains sensitive to the narrative that the AI rally in chip stocks was "too fast, too high."
On the commodity side, oil prices weakened. WTI fell about 3% to below US$90/barrel (around US$88) after US energy officials said shipping traffic in the Strait of Hormuz had increased, coupled with Trump's statement that a US-Iran deal could be reached in "two or three days" and that opening Hormuz would be "very soon." The oil decline weighed on energy stocks, which fell about 2% in the S&P 500.
While the energy and technology sectors weakened, the oil decline had a positive impact on other sectors. Materials and consumer discretionary stocks led gains in the S&P 500, and real estate also rallied after better-than-expected existing home sales data.
The big picture: the market is starting to "separate" the stories. The oil decline helped some cost- and inflation-sensitive sectors, but valuation pressures and volatility in chip stocks remained strong enough to prevent the indexes, particularly the Nasdaq, from continuing their recovery. (arl)*
Source: Newsmaker.id
