Nasdaq Falls 0.97% as Chip Rally Fades, June 10

The Nasdaq Composite fell 250.84 points, or 0.97%, to close at 25,678.82 on June 9. Semiconductor stocks that rallied Monday gave back gains as investors rotated out of tech. The broader market weakness comes as mega IPOs from SpaceX, OpenAI, and Anthropic reshape how stocks enter major indexes, potentially triggering trading surges.

Chip Stocks Reverse After Brief Rebound

The iShares Semiconductor ETF (SMH) shed 1% on June 9, reversing Monday’s 6% gain. Micron Technology fell 1% after jumping 10% the prior day, while Broadcom declined 1% as its rebound fizzled. The sector tumbled 10% on Friday, its worst day in six years, as investors feared AI-driven valuations had risen too far. The reversal reflects profit-taking after extreme volatility.

Energy Prices Fall on Middle East Ceasefire Hopes

West Texas Intermediate crude futures lost 3.4% to $88.20 a barrel on June 8 as U.S. Energy Secretary Chris Wright said Strait of Hormuz traffic is rising meaningfully. President Trump said a U.S.-Iran deal could happen in two or three days. Energy stocks on the S&P 500 fell 1.6%, though the oil decline boosted materials and consumer discretionary sectors.

IPO Rules Accelerate Index Entry and Trading Volatility

Nasdaq’s new 15-day Fast Entry rule, introduced in May 2026, compresses traditional timelines for index inclusion. Mega IPOs like SpaceX (launching June 12 at $135 per share) could enter the Nasdaq 100 within 15 trading days if they rank in the top 40 candidates. This forces passive index funds to execute concentrated purchases at the closing price, creating explosive trading volumes unlike previous IPO cycles.

Meyka Rating and Market Outlook

Meyka rates the Nasdaq Composite a C+ with a 12-month price target of $22,613.65, suggesting limited upside from current levels. The index’s RSI stands at 44.96, indicating neutral momentum, while the CCI at -151.12 signals oversold conditions. With volatility expected from upcoming mega IPOs and earnings season, investors should monitor technical support at 25,550.55.

Final Thoughts

The Nasdaq’s 0.97% drop reflects profit-taking in semiconductors and geopolitical relief in energy. With Meyka rating the index a C+ and technical indicators showing oversold conditions, the near-term risk is limited but upside remains capped by valuation concerns and IPO-driven volatility.

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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.