Updated
Updated · Detroit News · Jun 9
Nasdaq Drops 0.7% as Tech Slides Ahead of CPI and SpaceX's $75 Billion IPO
Updated
Updated · Detroit News · Jun 9

Nasdaq Drops 0.7% as Tech Slides Ahead of CPI and SpaceX's $75 Billion IPO

3 articles · Updated · Detroit News · Jun 9

Summary

  • By 11 a.m. ET, the Nasdaq had fallen 176 points and the S&P 500 lost 16, while the Dow rose 132 as an early rally faded.
  • Tech led the retreat: the S&P tech index fell nearly 1.7%, the Philadelphia SE Semiconductor index dropped 2%, and Intel, Broadcom and Micron each lost 1.7% to 2%.
  • Friday's strong U.S. jobs report sharpened rate worries, with traders now pricing a 43% chance of a 25-basis-point Fed hike in December.
  • Wednesday's May CPI report is the next test, as investors gauge whether Iran-war-driven energy costs are feeding inflation.
  • SpaceX's planned Friday debut — seeking $75 billion at a $1.75 trillion valuation — is adding caution as funds may need to free up cash for the record IPO.

Insights

With a Middle East war fueling inflation, can high-flying tech stocks survive another potential Federal Reserve rate hike?
As mega IPOs loom, is the market's heavy concentration in AI stocks setting the stage for a 2000-style dot-com crash?
AI spending is soaring, but productivity isn't. Is the tech market betting on a future that may never arrive?