Live Nasdaq Composite: No Safe Harbor as Chip Stock Rout Drags Markets Lower
Quick Read
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AI spending doubts triggered a market-wide selloff, with Nasdaq 100 futures plunging 2.5% and rising Treasury yields squeezing high-multiple tech valuations.
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Chip stocks bore the brunt, with Micron (MU) cratering 9% and SanDisk (SNDK) shedding nearly 10% in premarket trading.
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Deutsche Bank cut its Q4 gold forecast to $4,800 per ounce, warning a hawkish Fed could push prices down to $3,800.
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Flash PMI
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.
BofA Bullish on MU
In the midst of today’s stock market sell-off, Bank of America analysts see a buying opportunity. With Micron Technology (NASDAQ:MU | MU Price Prediction) 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.
Gold Bears
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.
This article will be updated throughout the day, so check back often for more daily updates.
The Nasdaq Composite is bracing for a rough open Tuesday as a wave of selling pressure tied to AI spending concerns is pulling futures sharply lower across the board. Nasdaq 100 futures are down 2.5%, S&P 500 futures are off 1.3%, and Dow futures are slipping 0.6%, with AI giants, chipmakers, and SpaceX (NASDAQ:SPCX) all facing heavy premarket selling as investors take a harder look at whether the massive infrastructure buildout underpinning the AI trade is generating returns that justify the capital being deployed.
The selling is broad based but chips are getting hammered. Micron Technology (NASDAQ:MU) is down 9%, SanDisk (NASDAQ:SNDK) is off nearly 10%, and Seagate Technology (NASDAQ:STX) is shedding more than 7%. Intel (NASDAQ:INTC), Advanced Micro Devices (NASDAQ:AMD), and Qualcomm (NASDAQ:QCOM) are each falling more than 6% to 7%, painting a picture of a sector-wide unwind that shows little sign of finding a floor before the opening bell.
Rising Treasury yields are adding another layer of pressure to an already cautious tape, with the rate backdrop compressing valuations on the high-multiple names that have carried the Nasdaq’s record-setting run
Here’s a look at where things stand as of pre-morning trading:
Dow Jones Industrial Average: 51,416 Down 0.72%
Nasdaq Composite: 25,529 Down 2.4%
S&P 500: 7,350 Down 1.6%
Market Movers
Bitcoin slid to a two-week low of $61,877 Monday as a tech-driven risk-off mood swept across markets and pulled crypto down alongside it. Ether, Solana, and XRP posted accompanying losses as the broader digital asset space tracked the weakness in high-beta risk assets. The pullback follows renewed unease over the pace of AI infrastructure spending and softening tech sentiment.
Meta Platforms (Nasdaq: META) has reportedly unveiled fresh smart glasses in the $299 price point.
Contact [email protected] for any questions or corrections.
Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
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