Nasdaq Falls 0.97% as AI Stock Volatility Persists, June 10

The Nasdaq composite fell 0.97% to 25,678.82 on June 9 as semiconductor stocks erased early morning gains and turned sharply lower. Micron Technology swung from a 4% jump to a 1.4% drop, while Marvell Technology fell 7.6% and Advanced Micro Devices sank 3%. The whipsaw reflects investor concerns that AI stock valuations have climbed too far too fast after last week’s 10% semiconductor crash.

Chip Rally Collapses Mid-Session

Semiconductor stocks opened higher on June 9 but reversed course by midday. The iShares Semiconductor ETF (SMH) shed 1% after rebounding 6% on Monday. Micron, which had jumped 9.9% the previous day, plunged 10% intraday before settling with a 1.4% loss. Broadcom and other chip names followed the same pattern, erasing gains as investors rotated out of the sector.

Micron’s stock has tripled so far this year, sparking criticism that it has risen too fast. Last Friday’s 13% rout marked the worst day for semiconductors in six years as fears of an AI bubble resurfaced.

Oil Prices Fall on Middle East Peace Hopes

West Texas Intermediate crude futures dropped 3.4% to $88.20 a barrel after U.S. Energy Secretary Chris Wright said Strait of Hormuz traffic is rising significantly. President Trump said a U.S.-Iran deal could be reached in two or three days. Energy stocks on the S&P 500 fell 1.6%, but the lower oil prices supported materials and consumer discretionary sectors.

Brent crude sank 3% to $91.45. Nearly three of every four S&P 500 stocks rose despite the broad index weakness, as investors rotated into cyclical names like Home Depot that could benefit from reopened trade routes.

SpaceX IPO Adds to Market Jitters

SpaceX is set to list on June 12 at $135 per share, raising $75 billion and valuing the company at $1.75 trillion. However, the IPO has a tiny free float of roughly 4%, meaning only a small portion of shares will trade publicly. This structure raises concerns about extreme price swings when trading begins.

Analysts warn that low float stocks are more sensitive to supply and demand shocks. Fidelity cut its minimum account balance for SpaceX IPO access from $500,000 to $2,000, opening the offering to more retail investors. OpenAI also filed confidentially for an IPO, adding to uncertainty about mega-cap tech valuations.

Meyka’s View on Nasdaq Weakness

Meyka rates the Nasdaq composite a C+ with a 12-month price target of $22,613.65, implying limited upside from current levels. The RSI at 44.96 shows neutral momentum, while the CCI at -151.12 signals oversold conditions. The ADX reading of 32.17 indicates a strong downtrend is in place. With volatility elevated and AI stocks under pressure, investors should monitor technical support levels before adding exposure.

Final Thoughts

The Nasdaq’s 0.97% drop reflects persistent uncertainty over AI valuations and upcoming mega-cap IPOs. Meyka’s C+ rating and neutral RSI suggest the index lacks clear direction. Investors should wait for stabilization before increasing tech exposure.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.