Nasdaq 100 tumbles 3.3% as tech stocks lead market selloff
US markets experienced a broad selloff led by technology stocks, with the Nasdaq 100 dropping 3.3% and the S&P 500 falling 1.6%. Marvell Technology and Coherent Corp were among the biggest decliners, while the J.M. Smucker Co surged on earnings. GSK Plc agreed to acquire Nuvalent Inc for $10.6 billion.
*this image is generated using AI for illustrative purposes only.
US stocks slid on Tuesday as a rotation out of high-flying chip and artificial-intelligence names resumed, dragging the Nasdaq 100 down 3.3% and pulling the S&P 500 back below 7,300. The selloff was broad but concentrated in technology, while defensive and financial names helped cushion the Dow Jones Industrial Average. A parallel collapse in oil prices, with crude sinking roughly 6%, did little to steady equities ahead of Wednesday's pivotal consumer price report. Markets are now pricing roughly even odds of around 50% that the Federal Reserve delivers a rate hike as soon as October, a hawkish tilt that continues to pressure the most richly valued corners of the market.
Major Indices Performance
By midday Tuesday, the S&P 500 fell 1.6% to about 7,228, while the Dow Jones Industrial Average proved more resilient, slipping 0.5% to 50,535. The Nasdaq 100 bore the brunt of the selling, sliding 3.3% to around 28,437. The small-cap Russell 2000 gave back an early advance to trade down about 1.3%. The VIX soared 14%, while gold offered no haven, with prices easing 2% to around $4,264 an ounce, and silver crushed over 5%.
| Index | Last | % Change |
|---|---|---|
| S&P 500 | 7,228 | -1.6% |
| Dow Jones | 50,535 | -0.5% |
| Nasdaq 100 | 28,437 | -3.3% |
| Russell 2000 | 2,797 | -1.3% |
Sector and Stock Movers
The Technology Select Sector SPDR Fund was the session's clear laggard, sinking 5.1%. The damage was deepest among AI-optical and data center-infrastructure names that have led the 2026 melt-up. The VanEck Semiconductor ETF sold off sharply as Coherent Corp cratered 15.2%, Marvell Technology tumbled 12.10%, and Lumentum Holdings Inc dropped 11.8%. Super Micro Computer fell a similar 11.8%, with the moves looking like profit-taking after enormous year-to-date runs rather than any fresh company-specific catalysts.
Energy was the other soft spot as the Energy Select Sector SPDR Fund slid 2.3% alongside crude's drop, though it remains the year's best sector at up 28.3%. On the corporate front, the J.M. Smucker Co topped the large-cap leaderboard, surging 11.2% after reporting fiscal fourth-quarter adjusted earnings of $2.77 per share, beating the $2.66 consensus, even as revenue of $2.27 billion came in just shy of estimates. DraftKings Inc rallied 7.9% on its push into prediction markets and supportive analyst commentary, including a UBS price-target hike to $49.
Top Gainers and Losers
SailPoint Inc sank 13.6% after the identity-security firm posted a quarterly loss of $0.13 per share against expectations of a small profit, overshadowing a 22% jump in revenue to $280 million. In deal news, Nuvalent Inc soared after GSK Plc agreed to acquire the lung-cancer drug developer for $10.6 billion, or $124 a share in cash. OpenAI confidentially filed for an IPO after Monday's close, while SpaceX is slated to make its market debut Friday.
| Name | % Change |
|---|---|
| The J.M. Smucker Company | +11.2% |
| DraftKings Inc. | +7.9% |
| FedEx Freight Holding Company, Inc. | +7.8% |
| SharkNinja, Inc. | +7.6% |
| Pool Corporation | +7.1% |
| Name | % Change |
|---|---|
| Coherent Corp. | -15.2% |
| Enphase Energy, Inc. | -13.9% |
| SailPoint, Inc. | -13.6% |
| Marvell Technology, Inc. | -12.10% |
| Lumentum Holdings Inc. | -11.8% |
How will the upcoming consumer price report influence the Federal Reserve's rate decision in October?
Will the rotation out of AI and chip stocks persist, or is this a temporary correction?
What impact could a potential rate hike have on the performance of defensive and financial sectors?
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