The stock market turned lower on Tuesday, June 9, 2026, as investors rotated out of chip stocks and the artificial intelligence rally lost momentum. The S&P 500 fell 1.4%, while the tech-heavy Nasdaq Composite dropped 2.5%, reversing modest gains from the prior day’s rebound. The Dow Jones Industrial Average declined 0.5%.
Chipmaker stocks that had driven recent market news turned lower, with Micron Technology, Nvidia, and Broadcom all reversing earlier gains. The pullback highlighted ongoing tension between optimism over artificial intelligence demand and growing concerns that persistent inflation could force the Federal Reserve to raise interest rates later this year.
The rotation out of technology stocks came after semiconductor shares had soared earlier in the year. The PHLX Semiconductor Index had climbed 82% in 2026 through late May, driven by surging demand for chips used in artificial intelligence applications. However, sentiment shifted dramatically last week when Broadcom’s earnings report sparked profit-taking, with the Nasdaq 100 falling 4.2% on Friday—its worst decline since April 2025.
Monday’s rebound had offered a brief respite, as dip buyers emerged and investors sought bargains in beaten-down chip stocks. That momentum proved short-lived on Tuesday. According to Yahoo Finance, investors appeared to be taking profits in semiconductor names that had led the market to all-time highs in recent weeks, as bets on Federal Reserve rate hikes built in response to strong economic data.
One bright spot came from energy markets, where oil prices retreated after Israel and Iran agreed to pause their cycle of attacks. Brent crude fell 2% to $92 a barrel, while West Texas Intermediate dropped 2.6% to $88 a barrel. President Trump said peace talks between the nations were on track, though he cautioned that renewed bombing could close the Strait of Hormuz for months.
Sources
- Yahoo Finance — S&P 500, Nasdaq, and Dow performance on June 9, 2026; chip stock declines; market rotation details
- Reuters — Semiconductor sector performance; June 5 selloff details; broader market context
- Wall Street Journal — Semiconductor Index 82% gain year-to-date through May 27, 2026
- Investopedia — Profit-taking in semiconductors explanation
