Live Nasdaq Composite: No Safe Harbor as Chip Stock Rout Drags Markets Lower

The S&P Global manufacturing flash PMI came in at 55.7 for June, edging above May’s reading and clearing the 54.8 Dow Jones consensus estimate. But the stronger headline number is masking some troubling details beneath the surface.

Much of the gain came from an inventory rebuild driven by supply fears, not genuine demand strength, and factory job cuts ran at their sharpest pace since 2009, excluding the Covid era.

Chris Williamson, chief business economist at S&P Global Market Intelligence, offered a cautious read on the data: “While there is better news from the manufacturing sector, we remain concerned as factory growth continues to be temporarily buoyed by inventory building amid supply fears. Supply delays grew more widespread in June.”

With manufacturers cutting headcount in three of the past four months, the underlying picture points to a sector navigating demand and cost pressures behind an otherwise solid top-line reading.

In the midst of today’s stock market sell-off, Bank of America analysts see a buying opportunity. With Micron Technology (NASDAQ:MU) taking a beating in today’s session, Bank of America is lifting its price target on the stock to $1,500 from $950 while holding firm on its Buy rating. The firm refreshed its semiconductor industry models, raising its 2030 total addressable market forecast to $2.7 trillion from $2.3 trillion, with memory and data center growth driving the bulk of the upgrade and incremental contributions from a recovery in auto and industrial markets. For investors with the stomach to look past today’s selloff, BofA’s revised framework suggests the long-term demand picture for memory chips remains intact.

Investors have fewer places to hide. Deutsche Bank is trimming its outlook on gold, cutting its Q4 price forecast to $4,800 per ounce while flagging a more sobering scenario in which the metal could retreat to $3,800 if the Federal Reserve follows through on multiple rate hikes. The bank pointed to a hawkish Fed posture, resilient U.S. economic data, and weak investment demand as the primary headwinds. ETF outflows, soft futures positioning, and cooling appetite from China and India are adding to the bearish case. Central bank buying remains the one pillar keeping the floor from dropping further.