New York, June 9, 2026, 16:01 (EDT)
- S&P 500 and Nasdaq slipped, with the earlier tech bounce losing steam. The Dow edged up a bit at the close.
- Chip and AI stocks were volatile again as investors tracked Iran tensions, waited for Wednesday’s CPI and eyed big upcoming IPOs.
- Market breadth didn’t fall as much as the major indexes, which shows rotation instead of a broader market pullback.
U.S. stocks closed mixed Tuesday. A quick bounce in tech faded, sending the Nasdaq down hard. The S&P 500 also slipped as traders pulled back from AI high-flyers and weighed new uncertainty out of the Middle East.
The Dow Jones Industrial Average added 15.98 points, or 0.03%, finishing at 50,801.99. The S&P 500 slipped 39.47 points, or 0.53%, to 7,366.26. The Nasdaq Composite tumbled 314.38 points, or 1.21%, ending at 25,615.28. Tech stocks picked up Friday’s losing streak after a brief recovery on Monday, with the S&P 500 technology index down more than 4% at its low and the Philadelphia Semiconductor Index most recently off 3.8%, Reuters said.
The shift is drawing attention as the top 2026 gainers aren’t leading the market higher anymore. Some traders are watching to see if the AI trade loses steam in a steady pullback, or if expensive chip, software, and data-center stocks are getting hit harder ahead of a busy stretch of inflation reports and fresh share offerings.
“When the bounce ran its course this morning, the tape came for sale more broadly,” said Michael O’Rourke, chief market strategist at JonesTrading. O’Rourke called part of the move “a momentum unwind,” saying shares that gained as investors chased winners started to reverse. Reuters
Selling hit the major indexes as tech megacaps slid, but Reuters said more NYSE stocks rose than fell. That suggests a rotation, with money moving between sectors, instead of broad-based selling.
Louis Navellier, a longtime Wall Street investor, told Business Insider that there was “still seeing profit taking in tech,” while sectors that underperformed last month were among the session’s stronger movers. “Returns are broadening, which is a good thing,” he said. Business Insider
Chip stocks turned lower after an early rally. Micron Technology gave up gains and slipped into the red. Marvell Technology and Advanced Micro Devices also lost ground after starting higher, the Associated Press said. The shift raised questions about whether the pullback in AI-related names is routine profit-taking after a big run, or a sign of a bigger reset.
Geopolitics weighed on the session. President Donald Trump blamed Iran for shooting down a U.S. helicopter near the Strait of Hormuz and said the United States “must” answer, according to Reuters. Oil slipped during trading, but investors stayed cautious about another possible jump in crude prices that could stoke inflation and push bond yields higher. Reuters
The Cboe Volatility Index, or VIX, moved to its highest mark since April 7 in the session, according to Reuters. The 10-year Treasury yield slipped to 4.53% from 4.56% late Monday, AP reported, still staying above where it was ahead of the Iran war.
The Consumer Price Index lands Wednesday, giving Wall Street its next inflation read. CPI tracks what consumers pay, and May numbers are set for release at 8:30 a.m. ET per the Labor Department. April’s CPI-U was up 3.8% over the past year. Markets will be watching for any shift that could influence the Federal Reserve’s June 16-17 meeting.
Economists are backing off earlier bets on rate cuts. A Reuters poll done June 4-9 found almost 70% now expect the Fed to keep its main rate at 3.50%-3.75% through the rest of 2026. “It’s going to be very hard for the Fed to justify any action at this point,” Tom Porcelli, chief economist at Wells Fargo, said. Rabobank’s Philip Marey said risks are shifting toward “more persistent inflation and fewer cuts and possibly hikes.” Reuters
AI stocks are up against another fight for capital. Reuters said OpenAI has confidentially filed for a U.S. IPO, following Anthropic’s move to go public. SpaceX is lining up an even bigger listing. When big IPOs hit, funds often have to cut their current positions to make space for new shares.
Apple stayed in the AI headlines after it launched its new Siri. Morgan Stanley said over 850 million iPhones won’t run basic Apple Intelligence queries, and more than 1.3 billion won’t get the advanced Siri features. Competing products like ChatGPT and Google’s Gemini still set the pace. Apple’s hurdle is getting investors to price in a new wave of upgrades tied to the software.
But Thursday’s drop isn’t a one-way trade yet. A softer CPI, quiet in the Strait of Hormuz, or strong interest in the IPO pipeline might bring buyers back to risk. On the other hand, if inflation runs hot, oil climbs, or rate-hike odds jump again, pricey AI names could get hit, especially after months when they traded on high growth hopes.
Oracle is set to report earnings Wednesday after the bell, giving another look at AI infrastructure demand. The firm is now seen as a cloud and data-center spending bellwether. Traders are focused on whether growing AI revenue will be enough to balance out worries about capex and margins.
