Global Chip Sell-Off Drives US Tech Stocks Lower
Key Metrics
- S&P 500: -1.43% (7,366.27)
- Nasdaq: -2.13% (25,609.75)
- Dow Jones: -0.09% (51,665.89)
- Semiconductor ETF (SMH): -6.0%
US stocks closed lower on June 24, 2026, with the S&P 500 falling 1.3% and Nasdaq dropping 2% amid a global semiconductor sell-off that particularly hit technology shares. The Dow Jones Industrial Average remained nearly flat as defensive sectors helped offset losses in tech stocks.
Market Performance
| Index | Close | Change | % Change |
|---|---|---|---|
| Dow Jones | 51,665.89 | -46.82 | -0.09% |
| S&P 500 | 7,366.27 | -106.52 | -1.43% |
| Nasdaq | 25,609.75 | -556.85 | -2.13% |
The main driver of the market weakness was a sharp sell-off in technology and semiconductor stocks, which spread globally from Asian markets to the US. Investors continued selling tech shares following weakness seen in the previous trading session, with the semiconductor sector being hit the hardest across global markets.
Sector Performance
| Sector | Performance |
|---|---|
| Consumer Staples | +1.7% |
| Real Estate | +1.4% |
| Healthcare | +1.3% |
| Utilities | +0.9% |
| Technology | -3.0% |
| Semiconductors | -6.0% |
Defensive sectors such as Consumer Staples, Real Estate, Healthcare, and Utilities outperformed, helping limit broader market losses. In contrast, technology-focused exchange-traded funds took significant hits, with the Technology Select Sector SPDR ETF (XLK) falling 3% and the VanEck Semiconductor ETF (SMH) dropping 6%.
Movers and Shakers
Top Gainers:
- IBM (+5%) after JPMorgan upgrade to "Overweight"
- Microsoft, Amazon, Walmart, Procter & Gamble, Johnson & Johnson (helped indexes recover from session lows)
- Sherwin-Williams and Merck (gains during the session)
Top Losers:
- Micron Technology (-11%)
- Sandisk (-12%)
- Seagate Technology (-6%+)
- Intel (-4%), AMD (-5%), Qualcomm (-8%)
- Alphabet (continued pressure after -5% drop on Monday)
Market Drivers
The weakness in tech stocks began with a semiconductor sell-off in Asia that carried over to US markets. Alphabet continued to face pressure due to concerns about talent departures, particularly in AI. Meanwhile, defensive stocks like Walmart, Procter & Gamble, Johnson & Johnson, and IBM helped offset technology losses.
Commodity Markets
Oil prices continued to fall, with WTI dropping about 1% to around $73 per barrel and Brent crude trading near $77 per barrel. Treasury yields were mostly unchanged, with the 10-year yield slipping to 4.50% from 4.51%. Bitcoin pulled back to near $62,100, and gold futures fell more than 1% to around $4,135 per ounce.
Interpretation
Tuesday's market reflected a clear rotation from growth to value stocks, with investors fleeing technology and semiconductor concerns. The global nature of the chip sell-off suggests broader concerns about semiconductor demand and profitability. The relatively stable Dow performance demonstrates how traditional industrial and consumer stocks can provide stability during tech volatility. The market's reaction to IBM's upgrade suggests defensive positioning may continue in the near term.
Outlook & Risks
Investors are watching closely for earnings reports from semiconductor companies, particularly Micron Technology (scheduled for Wednesday) and Cerebras (reported after Tuesday's close). The global chip sector weakness could persist if demand concerns continue. Additionally, ongoing concerns about AI talent retention at major tech companies like Alphabet may create further volatility in tech stocks. Defensive sectors may remain attractive in the near term if tech volatility persists.