Chip Stocks Hold Selloff

2026-06-23 17:14 By Andre Joaquim 1 min. read

A selloff for heavyweight chip producers pressured US equity indices on Tuesday.

The Nasdaq 100 slid 3% and the S&P 500 dropped 1%.

AI infrastructure companies, including semiconductor and memory chip producers, tanked on increasing skepticism that AI spending by hyperscalers will not meet returns.

On top of that, SK Hynix slowed production of advanced AI chips to boost commodity DRAM capacity, a sign that demand for compute could slow.

Micron, Lam Research, Sandisk, and Qualcomm plunged close to 10%, Tesla lost 5%, and Nvidia and Oracle slipped 3.5%.

On the same note, SpaceX plunged 16% before rebounding as it issued bonds only one week after its IPO, adding to caution on colossal capital expenditure.

Treasury yields remained elevated despite the decline in energy prices following the hawkish dot plot last week, limiting any respite for traditional sectors of the economy.

Still, gains for healthcare and consumer defensive companies aided the Dow to hover around the flatline.



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US Stocks Close Lower on Tech Selloff
US stock indices closed negative on Tuesday amid a selloff in heavyweight chip producers. The S&P 500 fell 1.4%, and the Nasdaq 100 lost 3.3% as AI infrastructure companies, including semiconductor and memory chip producers, tanked on increasing skepticism that AI spending by hyperscalers will not meet returns. Also, SK Hynix slowed production of advanced AI chips to boost commodity DRAM capacity, a sign that demand for compute could slow. Nvidia (-4.2%), Broadcom (-3.1%), Qualcomm (-8%), AMD (-5.8%), Micron (-13.2%), and Sandisk (-11.2%) posted losses. Tesla lost 5.8% and Oracle slipped 5.8%. Meanwhile, SpaceX added 1%, rebounding as it issued bonds only one week after its IPO, adding to caution on colossal capital expenditure. Treasury yields remained elevated despite the decline in energy prices following the hawkish dot plot last week, limiting any respite for traditional sectors of the economy. Gains for healthcare and consumer defensive companies aided the Dow to close near flat.
2026-06-23
Chip Stocks Hold Selloff
A selloff for heavyweight chip producers pressured US equity indices on Tuesday. The Nasdaq 100 slid 3% and the S&P 500 dropped 1%. AI infrastructure companies, including semiconductor and memory chip producers, tanked on increasing skepticism that AI spending by hyperscalers will not meet returns. On top of that, SK Hynix slowed production of advanced AI chips to boost commodity DRAM capacity, a sign that demand for compute could slow. Micron, Lam Research, Sandisk, and Qualcomm plunged close to 10%, Tesla lost 5%, and Nvidia and Oracle slipped 3.5%. On the same note, SpaceX plunged 16% before rebounding as it issued bonds only one week after its IPO, adding to caution on colossal capital expenditure. Treasury yields remained elevated despite the decline in energy prices following the hawkish dot plot last week, limiting any respite for traditional sectors of the economy. Still, gains for healthcare and consumer defensive companies aided the Dow to hover around the flatline.
2026-06-23
The Dow Jones Index Opens 0.64% Lower
The Dow Jones Index is losing 332 points. Losses were led by Caterpillar (-4.70%), Nvidia (-3.09%) and Cisco Systems (-2.77%). Offsetting the fall, top gainers were IBM (3.29%), Amgen (2.79%) and Microsoft (2.19%).
2026-06-23