The stock market today pulled back as semiconductor stocks lost momentum and oil prices fell on hopes that the United States and Iran are nearing a peace deal. The S&P 500 rose 0.24% to 7,423 points, though gains remained modest as investors reassessed bets on chip stocks that had surged earlier in the year.
Semiconductor stocks, which had climbed sharply on Monday following a brutal selloff the prior week, retreated again as profit-taking set in. The PHLX Semiconductor Index (SOX) had climbed 79.3% year-to-date as of late May, marking its best-ever start to a year, but the sector has grown volatile in recent days.
On Friday, June 5, the semiconductor complex suffered its worst drop since April 2025, with Micron and Broadcom tanking roughly 20% in two days after Broadcom missed revenue expectations and kept its AI targets flat. The broader selloff erased $1.4 trillion from semiconductor stocks in early June. Monday’s rebound was short-lived, as investors rotated out of the sector again on Tuesday.
Oil prices declined as traders grew more optimistic about Iran-US peace negotiations. President Trump said earlier today that the United States was in the “final throes” of reaching a deal with Iran and suggested an agreement could be signed within “two or three days.” Oil has fallen sharply since late May when peace deal hopes first surfaced, dropping roughly 20% from 2026 highs as traders wagered that a ceasefire could reopen the Strait of Hormuz and ease supply concerns.
The chip sector’s volatility reflects both the boom in artificial intelligence investment and investor anxiety about whether the rally has run too far. The semiconductor index had climbed 82% in 2026 through May, driven by global memory chip shortages and surging AI infrastructure spending. Yet the sector’s sharp moves have raised warnings from some analysts who compare the current rally to the dot-com bubble of the late 1990s.
Sources
- Investopedia — Stock market indexes drop as chip stocks pull back; oil retreats on Iran peace deal hopes, June 9, 2026
- Reuters — S&P 500, Nasdaq rise as tech, chipmakers rebound, June 8, 2026
- NBC News — U.S. in the “final throes” of Iran deal, Trump says, June 9, 2026
- Al Jazeera — Oil prices fall amid mixed signals on US-Iran peace deal, May 25, 2026
- CNBC — Oil prices fall 20% as traders eye U.S.-Iran ceasefire, May 29, 2026
- Intellectia AI — AI Semiconductor Stocks Selloff June 2026: $1.4T Crash Analysis, June 9, 2026
- Wolf Street — Semiconductor Stocks Roll Over, Micron & Broadcom Tank 20% in 2 Days, June 5, 2026
- Morningstar — The surge in chip stocks this year is putting the dot-com rally to shame, May 27, 2026
