The Nasdaq fell for a second straight day as chip stocks led the selloff. NVIDIA, Lam Research, KLA, and Applied Materials all traded lower. Rising US bond yields are the culprit — higher rates hit high-multiple growth stocks hardest. South Korea's market plunged over 5% as the damage spread to Asian tech heavyweights overnight.
The week's most dramatic headline hit SpaceX. Shares shed more than 16% after the debut rally reversed sharply. Fresh highs in US Treasury yields triggered the selloff. The drop erased over $400 billion in market value in days. Options traders had already been rotating into quantum names like IonQ and Rigetti Computing, both of which carry elevated short interest above 15%.
Micron Technology reports Q3 2026 results today after the close. The AI memory giant's $1.37 trillion market cap means any guidance disappointment will ripple wide. FedEx also reports Q4 today — logistics demand trends will be closely watched with a slowing macro backdrop.
European stocks slid overall, but defense names bucked the trend. Ukraine's ratification of a $105 billion EU loan deal powered the sector higher. Separately, Tesla European sales more than doubled in May. However, Chinese rivals like BYD continue to grow even faster, keeping competitive pressure intense.
Short sellers are active across the semiconductor space. Wolfspeed saw short interest jump to 104.7% of free float in a week. Insider selling at Applied Materials — nearly $87M across five executives — adds to the cautious tone around chipmakers right now. Daiwa also cut PDD Holdings to Hold today, adding to the pressure on China-exposed names.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
