S&P 500 and Nasdaq hit session lows as tech selloff erases morning gains

The S&P 500 and Nasdaq Composite reversed earlier gains on Wednesday as renewed selling across technology and semiconductor stocks pushed both indexes lower in afternoon trading.

The Nasdaq fell nearly 100 points, while the S&P 500 slipped as investors continued reducing exposure to some of the market’s strongest AI and chip names.

Micron Technology remained at the center of the volatility ahead of its earnings report after the closing bell.

The memory chipmaker fell about 3% during Wednesday’s session. That followed a much steeper 13% decline on Tuesday as investors cut positions before the report despite expectations for strong revenue growth and guidance.

The broader semiconductor trade also remained under pressure. Concerns over valuations, AI infrastructure spending, and the amount of future growth already reflected in share prices have made chip stocks increasingly sensitive to earnings and guidance.

The Nasdaq has now recorded moves of at least 1% in either direction for six consecutive trading sessions, its longest such streak since August 2024.

That volatility reflects a sharp change from the steady rally that carried technology stocks to record highs earlier in June.

Bitcoin also traded lower alongside the weakness in risk assets, falling near $62,600. The asset remains well above the roughly $59,100 low reached earlier in June, but its latest decline again showed how closely it is trading with US technology stocks.

The connection has strengthened as institutional investors, exchange traded funds, and macro traders increasingly treat Bitcoin as part of the same risk allocation as high growth equities.

When technology stocks fall and investors reduce exposure, Bitcoin often comes under pressure at the same time.

Micron’s earnings are now the next major test for the AI trade. Strong results may help stabilize memory and semiconductor stocks, while weaker guidance could deepen concerns that expectations have moved ahead of underlying growth.

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