New York, June 9, 2026, 12:02 EDT
- The Nasdaq and S&P 500 slipped after chip stocks gave up early gains.
- Investors are watching for inflation data on Wednesday and looking ahead to SpaceX’s planned debut later this week as both events shape near-term risk appetite.
- The move puts pressure on a rally led mostly by artificial intelligence and big tech stocks.
S&P 500 and Nasdaq slipped by midday Tuesday, pulling back after an early rally from chip stocks faded and tech weighed on the market. Nasdaq was down 1.71%, S&P 500 dropped 0.99%, and the Dow lost 0.52%, according to LSEG data.
Semiconductors slipped as the AI rally ran out of steam, with the Philadelphia SE Semiconductor Index dropping 2% after being up 3% earlier in the session. Broadcom, Micron and Nvidia all traded lower. “Tech stocks have carried the market’s growth and momentum,” said Jordan Rizzuto, chief investment officer at GammaRoad Capital Partners. He said that left the sector open to profit taking as rate concerns ticked up. Reuters
Awkward timing for markets. May’s consumer-price numbers land Wednesday, bringing a key inflation read that could sway Fed expectations. SpaceX also plans an initial public offering later this week. Strong payrolls on Friday have put rate worries back in play, with some investors now betting rates will stay high or move up.
U.S. stocks mostly finished higher Monday, with investors stepping in to buy beaten-down chip names after Friday’s sharp drop. The Philadelphia semiconductor index rallied 5.6%, clawing back some ground after a wipeout that erased $1 trillion off U.S.-listed chipmakers. Rick Meckler at Cherry Lane Investments called it “bargain hunting,” but said the market had been “priced for perfection.” Reuters
AI stocks helped steady the big indexes Monday, but most names still fell. Reuters’ Mike Dolan wrote that 60% of the S&P 500 ended in the red. Dolan also flagged a heavy pipeline on the way, as SpaceX readies a listing and OpenAI said Monday it filed confidentially to go public.
SpaceX is putting new pressure on the market. The company is after $75 billion at a $1.75 trillion valuation. That’s a big number—so big that some funds and exchange-traded funds may need to shift their holdings. “Funds would need to make room,” Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest, said. Reuters
The risk cuts both ways. Softer inflation or a quiet oil market could bring dip buyers in fast. But a hot inflation print, fresh Middle East oil trouble, or soft demand near the SpaceX deal may see people pull back. Brent crude dropped 3.3% to $91.12 on Tuesday, AP said, giving airlines some relief but inflation talk isn’t going away.
Narrow leadership went against the broader market on the day. The Nasdaq and S&P 500 both swung sharply lower after midday as selling hit semiconductor and optical-networking names, Barron’s said, even though most S&P 500 stocks were up.
Stocks aren’t reacting to one set of earnings. Instead, the focus is on whether AI growth can keep up with current valuations if rates don’t fall. Mark Hackett, chief market strategist at Nationwide, called it an “insatiable appetite for tech holdings.” Jason Pride of Glenmede said SpaceX could test if the rally is looking “market froth.” Reuters
