Stocks Retreat as Tech Shares Plunge

The S&P 500 Index ($SPX) (SPY) today is down -1.26%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.30%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -2.69%.  September E-mini S&P futures (ESU26) are down -1.14%, and September E-mini Nasdaq futures (NQU26) are down -2.58%. 

Stock indexes are falling sharply today, with the S&P 500 posting a 1.5-week low and the Dow Jones Industrial Average and the Nasdaq 100 posting 1-week lows.  Concerns over the high valuations of chipmakers and memory stocks, among the biggest beneficiaries of the artificial-intelligence trade, have led to global selling in those sectors today as investors question whether future returns can justify current spending on AI.

Today’s stock slump began in Asia, with Japan’s Nikkei Stock Average falling by more than -3%.  Also, South Korea’s Kospi index closed down more than -10%, as foreign investors offloaded more than $2.5 billion of Kospi shares.  South Korea’s SK Hynix and Samsung Electronics closed down by more than -12%, sparking forced liquidation that hit retail investors trading on margin, compounded by a wave of selling tied to leveraged exchange-traded funds (ETFs) tracking the two chip giants.

Today’s US economic news was supportive for stocks after the Jun S&P manufacturing PMI unexpectedly rose +0.6 to 55.7, stronger than expectations of a decline to 54.6 and the strongest figure in 4 years.

The markets are discounting a 36% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.

Overseas stock markets are sharply lower today.  The Euro Stoxx 50 fell to a 1-week low and is down -1.27%.  China's Shanghai Composite fell from a 1-month high and closed down -1.37%. Japan’s Nikkei-225 Stock Average closed down -3.55%.

Interest Rates

September 10-year T-notes (ZNU6) today are up +7 ticks, and the 10-year T-note yield is down -2.2 bp to 4.487%.  T-notes are climbing as today’s sharp selloff in global equity markets has fueled safe-haven demand for government debt securities.   Also, easing inflation expectations are supportive of T-notes, as the 10-year breakeven inflation rate fell to a 6-month low of 2.217% today.  Gains in T-notes are limited due to supply pressures, as the Treasury will auction $69 billion of 2-year T-notes later today.

European government bond yields are moving lower today.  The 10-year German bund yield dropped to a 2.5-month low of 2.905% and is down -3.9 bp to 2.913%.  The 10-year UK gilt yield is down -4.1 bp to 4.767%.

The Eurozone Jun S&P manufacturing PMI fell -0.3 to 51.3, weaker than expectations of no change at 51.6.  However, the Jun S&P composite PMI rose +1.0 to 49.5, stronger than expectations of 49.2.

Eurozone May new car registrations rose +3.2% y/y to 955,000 units, the fourth consecutive monthly increase.

ECB Chief Economist Philip Lane said ECB Officials face the risk that inflation will hover above their goal "for quite some time."

The UK Jun SP manufacturing PMI fell -0.8 to 53.1, weaker than expectations of 53.5.

Swaps are discounting a 10% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.

US Stock Movers

Chipmakers and AI-infrastructure stocks are sharply lower, driving today’s selloff in equity markets.  The iShares Semiconductor ETF (SOXX) is down more than -7%.  Sandisk (SNDK) is down more than -12% to lead the S&P 500 and Nasdaq 100 losers, and Micron Technology (MU) is down more than -11%.  Also, ON Semiconductor (ON), Lam Research (LRCX), and Applied Materials (AMAT) are down more than -9%, and Western Digital (WDC), Qualcomm (QCOM), and KLA Corp (KLAC) are down more than -8%.  In addition, Marvell Technology (MRVL), Seagate Technology Holdings Plc (STX), ARM Holdings NV (ARM), and Texas Instruments (TXN) are down more than -7%, and Advanced Micro Devices (AMD), Microchip Technology (MCHP), Analog Devices (ADI), and Intel (INTC) are down more than -6%. 

Mining stocks are under pressure today, with gold and silver falling sharply to 1.5-week lows.  Coeur Mining (CDE), Freeport McMoRan (FCX), and Southern Copper (SCCO) are down more than -6%, and Hecla Mining (HL) is down more than -5%.  Also, Newmont Corp (NEM) and Barrick Mining (B) are down more than -4%, and Anglogold Ashanti (AU) is down more than -3%. 

Primoris Services (PRIM) is down more than -33% after cutting its full-year profit outlook to $2.05 to $2.60 from a previous estimate of $4.80 to $5.00, well below the consensus of $4.74. 

Best Buy (BBY) is down more than -3% after announcing that CFO Bilunas will step down at the end of July after 20 years, including seven years as CFO. 

Edgewell Personal Care Co (EPC) is up more than +13% after rejecting an unsolicited takeover offer from Yellow Wood Partners, saying the $30 a share offer is too low. 

CDW Corp (CDW) is up more than +5% to lead gainers in the S&P 500 after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $170.

International Business Machines (IBM) is up more than +4% to lead gainers in the Dow Jones industrials after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $291.   

Avis Budget Group (CAR) is up more than +4% after entering into a settlement agreement with Pentwater Capital Management, which will pay Avis $650 million to resolve a lawsuit seeking recovery of short-swing profits.

Target (TGT) is up more than +3% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $162.

Earnings Reports(6/23/2026)

Carnival Corp Ltd (CCL), FedEx Corp (FDX), Hub Group Inc (HUBG), KB Home (KBH), Korn Ferry (KFY), Replimune Group Inc (REPL), Worthington Enterprises Inc (WOR), XCF Global Inc (SAFX).