{"id":694942,"date":"2026-06-10T04:48:14","date_gmt":"2026-06-10T04:48:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/694942\/"},"modified":"2026-06-10T04:48:14","modified_gmt":"2026-06-10T04:48:14","slug":"wall-street-dumped-nearly-1-trillion-in-tech-stocks-by-midday-then-bought-peanut-butter-and-paint","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/694942\/","title":{"rendered":"Wall Street dumped nearly $1 trillion in tech stocks by midday\u2014then bought peanut butter and paint"},"content":{"rendered":"

Today, the Nasdaq<\/a> Composite looked like a V: down more than 4% by lunchtime, closing off just 1%.\u00a0<\/p>\n

Nobody knows exactly why.<\/p>\n

Around noon, the AI jitters came back, and traders dumped the highest-beta names\u2014the frothiest, most volatile stuff\u2014like Strategy (MSTR), the leveraged Bitcoin vehicle that had popped Monday; AppLovin<\/a> (APP); and photonics maker Lumentum (LITE).\u00a0<\/p>\n

But the densest cluster was the chipmakers: Marvell, which dropped 10% in a day after jumping 10% on news it\u2019s joining the S&P 500, and the rest of what strategist Ben Emons has dubbed the \u201cParabolic 7,\u201d after a chip index that ran up nearly 100% in a matter of weeks.\u00a0<\/p>\n

Rather than fleeing equities altogether\u2014Treasuries barely moved\u2014the market rotated into peanut butter and paint: Smucker jumped double digits; Home Depot<\/a> and Sherwin-Williams<\/a> led. Real estate, staples, and utilities finished up: the classic ballast against tech froth.<\/p>\n

\u201cYou\u2019re seeing money flow into consumer names that have been unwanted and unloved,\u201d Richard Steinberg, senior global market strategist at Focus Partners Wealth, told the Wall Street Journal.<\/p>\n

The trigger wasn\u2019t clear, but there are real reasons to want out of chips, diversifying away from the AI trade. Wall Street has to make room for SpaceX<\/a>, set to be the largest IPO ever, on Friday, with OpenAI and Anthropic\u2014both<\/a> now confidentially filed<\/a>\u2014close behind. Annex Wealth Management\u2019s Brian Jacobsen called the tech run an Icarus trade with the wings melting: Alphabet\u2019s rare capital raise was the first warning, and SpaceX the \u201cshiny new toys\u201d pulling money out. Though even that story has a wrinkle: SpaceX is already oversubscribed, with multiple $10 billion orders in.<\/p>\n

Also this week, inflation data lands Wednesday and Thursday, and a strong May jobs report last week has already pushed expectations for rate cuts further out. Funds tend not to sit in their most crowded, highest-beta positions going into an inflation reading that could move the Fed\u2019s path, which could be why some froth got cut off now.\u00a0<\/p>\n

The selling may also be less about selling than an absence of buyers. Founder ETFs\u2019 Michael Monaghan described it as buyers stepping back rather than a rush for the exits, dropping the price faster than the volume would suggest.\u00a0<\/p>\n

Oil went the other way. Even after President Donald Trump said the U.S. would have to respond to Iran\u2019s downing of a U.S. Army Apache helicopter near the Strait of Hormuz, crude fell about 3% to roughly $88, as the energy secretary said traffic through the Strait was picking up meaningfully.\u00a0<\/p>\n

Certainly investors are now wondering if this is the start of a longer \u201cpop\u201d or just a one-time correction. For them, the best information will come as SpaceX debuts, and public capital gets to decide if they believe in the AI story or not.<\/p>\n","protected":false},"excerpt":{"rendered":"Today, the Nasdaq Composite looked like a V: down more than 4% by lunchtime, closing off just 1%.\u00a0…\n","protected":false},"author":2,"featured_media":694943,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[184,28,2402,160,4759,134,112,921,920,918],"class_list":["post-694942","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-anthropic","tag-business","tag-inflation","tag-investors","tag-ipos","tag-jobs","tag-markets","tag-nasdaq","tag-sp-500","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/694942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=694942"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/694942\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/694943"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=694942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=694942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=694942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}