Dow Jones S&P 500 and Nasdaq fall: Why did the Nasdaq 100 crash more than 550 points today? US stock market Dow Jones, S&P 500 and Nasdaq plunge into deep red as AI’s biggest winners become the market’s biggest losers
These June 2026 Nasdaq chip stock sales aren’t just a number on a screen. This is a signal of how markets price technological revolutions and how violently they reprice them.
US stock market crashed today: Marvell, Nvidia and Chip Shares Lead Nasdaq Decline
Marvell Technology (MRVL) was the most visible casualty. Marvell led the Nasdaq’s decliners, falling more than 12% before jumping nearly 10% on Monday, boosted by AI infrastructure optimism, before reversing sharply on Tuesday. Approximately $1.4 trillion in market value was wiped out in the AI semiconductor sector during this week’s sell-off; Nvidia alone lost $279 billion in market value, and Marvell lost 17% in the first Friday session alone.
Tuesday’s session further increased these losses. Nvidia (NVDA) opened up about 1% before returning down 3.3%. Tesla, the other winner of the Magnificent Seven on Monday, fell 5.4%. Apple is down more than 4% and still received a weak reception at its annual Worldwide Developers Conference. Each member of the Magnificent Seven finished the race in red.
The iShares Semiconductor ETF (SOXX) lost 6% on the day, its third biggest decline in less than a week. The pattern is clear: The semiconductor industry fell 10% in a single session on Friday; Broadcom was down 12.6%, Marvell was down 17%, Intel and AMD were down around 11% each, and Micron was down 13% after losing 8% in the previous session.
These are not marginal movements in marginal stocks. These are the companies that the market has crowned as the infrastructure of the future, and they are quickly being repriced.
US stock market crash: What Actually Triggered This AI Chip Stock Crash?
The immediate reason for this is based on Broadcom’s earnings at the beginning of the week. Broadcom’s cautious AI chip outlook, combined with the deepening memory chip crisis and a projected collapse in global smartphone demand, has triggered the decline in the broader semiconductor sector. Despite the pullbacks, both AMD and Intel have made significant gains year-to-date, driven by the boom in AI infrastructure, but they now face greater scrutiny on valuations and changing market dynamics. This last sentence is important: valuations and changing dynamics. Broadcom did not announce the disaster. It announced something more troubling to an overheated market: uncertainty. In an industry where stocks are perfectly priced, uncertainty acts as a trapdoor.
There is also a deeper structural problem at play. Marvell, for example, had a valuation of up to 83 times its forward earnings at its peak in January; this was a valuation that desperately needed to be reset. The stock is now down nearly 50% from those highs. The same dynamic played out in the semiconductor space. Investors were paying tomorrow’s prices for today’s gains, and now tomorrow continues to change.
Chip sales have also spread far beyond U.S. borders. South Korea’s Kospi closed Friday down 5.54%, while Samsung Electronics and SK Hynix fell 6.40% and 9.92%, respectively. ASML fell 3.8% and German chipmaker Infineon fell more than 6%. This is not a localized fix, but a global repricing of the AI semiconductor trade.
Beyond the Iran War, Oil Prices and Technology, What Is Challenging the Markets?
Chip sales do not exist in a vacuum. Broader macroeconomic stress amplifies every negative signal. Oil prices fell 3.4 percent on Tuesday to around $88 per barrel after President Trump said a U.S.-Iran deal could happen within days. It perfectly captured the contradictory mood: Every hopeful signal came with an asterisk.
Meanwhile, Bitcoin has fallen below $61,000 from overnight highs around $63,800 and touched below $60,000 on Friday for the first time since October 2024. Risk appetite is rapidly diminishing across all asset classes.
The 10-year Treasury yield remained around 4.53%, down slightly from 4.57% at Monday’s close. Gold futures fell 1.8% to $4,285 per ounce. These are not the moves of a market confidently pricing in growth. These are the market’s hedging moves against a scenario it has not yet fully named.
And this anonymous script has a date: Wednesday. The May Consumer Price Index comes from the Bureau of Labor Statistics, and forecasters expect a 4.2% year-over-year increase; This is the highest annual inflation reading since April 2023. Core CPI is expected to increase from 2.8% in April to 2.9%. The driver for this, unlike 2021, is not supply chain chaos from COVID. This time, the Iran war is restricting oil supplies and pushing energy prices and those costs into everything else.
Is the AI Swap Over or Just Repricing?
The honest answer is: no one knows yet. What the market is doing now is not passing judgment on AI. It’s a matter of judging how much AI is priced to deliver. There is an important difference. Despite the severity of the initial decline, semiconductor stocks showed notable resilience; Through Monday, June 8, the Nasdaq had rebounded about 0.9% as AI-related semiconductor companies rebounded. This rapid stabilization suggested that the sell-off represented a technical correction rather than a fundamental reassessment of AI growth prospects.
This rebound partially unraveled on Tuesday. This pattern neither signals the bursting of a bubble nor a soft correction; It points to a real disagreement among major investors about where fair value actually lies.
What’s undeniable: Marvell’s data center end-market revenue rose 78% in Q4 as the boom in AI spending continues, and the company is expected to grow revenue by 44% this year. These figures have not changed. What changes is the amount investors are willing to pay for them.
What Should Investors Pay Attention to Before Market Opening on Thursday?
The three most important things in the next 48 hours. First up is Wednesday’s CPI edition. A reading of 4.2 percent would shake rate expectations and put pressure on already stretched tech valuations.
Second, Oracle earnings after Wednesday’s close; Options markets are pricing in an 11% swing in either direction, and any signal of AI infrastructure spending could boost the entire chip industry.
Third is VIX. It closed at 21.51 on Tuesday, up nearly 40%. This is not panic territory, but it is approaching the threshold at which institutional investors will be forced to rebalance, which strengthens moves in both directions.
