Astera Labs Inc. shares are in focus after Nasdaq announced its quarterly index reconstitution, with ALAB set to join the Nasdaq-100 effective before market open on June 22. The addition requires every ETF and passive fund tracking the Nasdaq-100, including the QQQ which manages over $300 billion in assets, to purchase Astera shares ahead of that date. This structural demand is expected to generate sustained buying pressure in the days leading up to the effective date.

Nasdaq’s quarterly reconstitution will add Astera to the Nasdaq-100 alongside CoreWeave, Nebius Group, Rocket Lab, and Teradyne. Exiting the index are Charter Communications, Cognizant, Insmed, Verisk Analytics, and Zscaler. The changes take effect before market open on June 22.

Business Performance and Guidance

The inclusion follows significant growth for the company, which designs semiconductor-based connectivity solutions for rack-scale AI infrastructure. Revenue and EPS have grown more than 5x since its IPO. The company guided Q2 2026 revenue to $355–$365 million, reflecting 15–18% sequential growth.

The stock has surged 203% over the past three months, driven by strong demand for its Scorpio switches, custom silicon, and optical engines. These components are critical in the AI data center buildout.

Index Changes Overview

At the time of publication, Astera shares are trading 4.09% higher at $382.50.

Oil prices jumped and US stocks fell on Wednesday as renewed US-Iran strikes in the Strait of Hormuz reignited supply concerns, sparking a broader selloff in high-valuation technology shares. The move came after President Donald Trump warned that Tehran had "taken too long to negotiate a deal" and would "have to pay the price," while threatening additional strikes against Iran. West Texas Intermediate crude climbed 3.3% to around $91.07 a barrel, while Brent rose 2.9% to roughly $94.10.

On Wall Street, losses were broad-based but concentrated in technology, as concerns over elevated AI-related valuations resurfaced alongside hotter-than-expected inflation data. The annual inflation rate climbed from 3.8% to 4.2% year over year in May, matching expectations and reaching the highest level since April 2023. Money markets now fully price in a 25-basis-point Fed rate hike by year's end.

Major Indices Performance

The S&P 500 fell 0.9% to 7,319.63, while the Dow Jones Industrial Average dropped about 592 points, or 1.2%, to 50,280. The Nasdaq 100 was the day's laggard, sliding 1.4% to 28,670. The small-cap Russell 2000 proved more resilient, slipping just 0.3% to 2,858.65. Gold extended its sharp pullback, falling 3.1% to around $4,128 an ounce and leaving the metal down nearly 13% so far this month.

Sector and Stock Movers

The Energy Select Sector SPDR Fund led all 11 S&P sectors, up 2.6%, as crude's surge lifted producers and Middle East supply risk returned to the fore. The SPDR S&P Oil & Gas Exploration & Production ETF topped the industry tables with a 3.7% gain. Higher oil prices punished airlines, dragging the U.S. Global Jets ETF down 3.8%, while rate-sensitive renewables slumped, with the Invesco Solar ETF tumbling 4.1%.

The selling was led by the Industrials Select Sector SPDR Fund, down 2.5%, followed by the Technology Select Sector SPDR Fund, off 1.6% as semiconductors buckled. The VanEck Semiconductor ETF lost 2.9% as Broadcom Inc., down 4.5%, and Micron Technology Inc., down 3.5%, weighed on the group. Super Micro Computer Inc. cratered 17.9% after announcing roughly $7 billion of equity and equity-linked financing to fund component purchases for some $39 billion of AI-server orders, stoking dilution fears.

Top Gainers and Losers

Casey's General Stores Inc. surged 14.3% after fiscal fourth-quarter results showed diluted EPS of $4.37, up 66% year-over-year. Murphy USA Inc. rose 9.0% as the spike in crude promised to fatten fuel margins. Devon Energy Corp. gained 6.5%, riding the oil rally alongside its post-Coterra-merger outlook, an $8 billion buyback and a 33% dividend increase.