US Stocks Close: Nasdaq Composite Falls More Than 1%, Investment Banks Dampen Market Sentiment, Gaming Stocks Rise Against Trend

Tradingkey - On June 9, the three major U.S. stock indices stumbled at the open before paring losses amid volatility. Multiple international investment banks warned that market risks have not been fully cleared, weighing on AI investment sentiment as tech stocks led the downturn. By the close, the Nasdaq and S&P 500 posted the largest declines, while the Dow Jones Industrial Average found slight support.

By the close, the Dow Jones Industrial Average rose 0.17% to 50,872.11; the S&P 500 Index fell 0.26% to 7,386.65; and the Nasdaq Composite Index dropped 0.97% to 25,678.82.

Tech stock performance

Qualcomm (QCOM) fell 5.67% to $205.42.

Nvidia CEO Jensen Huang publicly voiced his support for Qualcomm during an event. "I don't think we've done a very good job in mobile devices, nor is it necessary," Huang said. "I think they (Qualcomm) do a very good job. Buy their stock." He then added a self-deprecating summary: "This is good. I spend all day helping others sell stocks. Yes, helping people is a good thing, and we should be happy for others' success."

Marvell Technology (MRVL) dropped 7.61% to $266.88.

Latest data shows that after months of sustained inflows into the semiconductor sector, the trading preferences of U.S. retail investors are undergoing a significant shift. Capital is beginning to rotate out of artificial intelligence (AI) and chip-themed stocks toward more volatile speculative equities. Recent retail flow data from research firm Vanda Research indicates that retail investors have lately been reducing their holdings in semiconductor-related stocks while increasing allocations to high-beta individual names.

Other tech giants were mostly lower: Apple (AAPL) fell 3.64%, Tesla (TSLA) dropped 3.00%, Microsoft (MSFT) declined 2.02%, Broadcom (AVGO) shed 1.12%, Amazon (AMZN) lost 0.42%, and Nvidia (NVDA) dipped 0.22%; Google (GOOGL) edged up 0.26%, and TSMC (TSM) rose 0.26%.

The Philadelphia Semiconductor Index closed down 1.93% at 12,567.81 points. Among its 30 constituents, 10 advanced and 20 declined. Marvell Technology (MRVL) fell 7.61%, Arm Holdings (ARM) dropped 6.22%, Qualcomm (QCOM) declined 5.67%, Rambus (RMBS) shed 3.41%, ON Semiconductor (ON) lost 3.23%, and Advanced Micro Devices (AMD) retreated 3.02%.

Gaming stocks bucked the downward trend to trade higher, with DraftKings (DKNG) surging 11.34%, Flutter Entertainment (FLUT) rising 6.06%, Rush Street Interactive (RSI) gaining 5.55%, and Inspired Entertainment (INSE) climbing 4.87%.

Airline stocks were among the top gainers, with Southwest Airlines (LUV) rising 5.24%, United Airlines (UAL) gaining 4.09%, Delta Air Lines (DAL) up 3.78%, and American Airlines (AAL) advancing 3.60%.

Popular Chinese concept stocks were mostly lower: GDS Holdings (GDS) rose 4.09%, NetEase (NTES) gained 1.71%, and Luckin Coffee (LKNCY) climbed 1.50%; Pony AI (PONY) fell 4.13%, Hesai (HSAI) dropped 3.76%, CHAGEE (CHA) declined 3.37%, NIO Inc. (NIO) lost 3.12%, and Li Auto (LI) shed 2.89%.

Corporate News

EU Orders Meta to Restore WhatsApp Access to Competitor AI Within Five Days

The European Commission issued an interim order on Tuesday requiring Meta to stop restricting rival AI companies' access to WhatsApp Business services within five working days and to restore free access for general-purpose AI assistants to prevent irreversible harm to market competition. Meta immediately stated it would appeal the decision.

SpaceX IPO Receives Multiple Institutional Oversubscriptions

According to sources familiar with the matter, the SpaceX IPO has been oversubscribed by institutional investors several times over, with demand climbing further following the management roadshow. Multiple large institutions placed single orders exceeding $10 billion, and banks stated that institutional allocations will be primarily concentrated among long-term investment managers.

Anthropic Releases Mythos-Class Model Claude Fable 5

Anthropic announced the launch of Claude Fable 5 on Tuesday, the company's first Mythos-class AI model made widely available to enterprise customers and paid users.

Claude Fable 5 offers significant performance improvements in software engineering and knowledge work tasks, with some benchmark scores more than 10% higher than those of Claude Opus 4.8 released last month. For high-risk queries, the Fable 5 model features built-in strict safety safeguards that block requests in high-risk areas such as cybersecurity and biology, automatically switching to the Opus 4.8 model to generate safe responses when encountering such issues.

Industry & Macro News

Trump Says U.S. Must Respond to Iran Downing U.S. Helicopter

U.S. President Donald Trump stated on social media that on Monday night, Iran shot down a U.S. military Apache helicopter conducting a patrol mission over the Strait of Hormuz. Both pilots on board were unharmed. "Nonetheless, the U.S. must respond to this attack," Trump said.

Wells Fargo: Tech Stock Sell-Off Rings Alarm Bells

Wells Fargo noted that last Friday's market sell-off, led by tech stocks, serves as a wake-up call for investors, following the bank's repeated warnings about the risks of crowded AI trades. Analyst Ohsung Kwon believes the short-term "sweet bubble" that fueled the recent rapid stock market ascent has burst, and the firm maintains a cautious stance on the broader equity market.

The firm further noted that the plunge was essentially driven by positioning adjustments rather than deteriorating fundamentals; therefore, it is unlikely to evolve into a sustained bear market, though the pace of future market gains will slow significantly. It expects the primary "buy semiconductors" trade to return and recommends that investors maintain holdings in the AI sector while selling call options. This view aligns with most market strategists, who also view the recent correction as a significant risk warning.

U.S. Energy Secretary Says Strait of Hormuz Oil Shipments Rebounding and Set for Continued Growth

U.S. Energy Secretary Chris Wright stated that it is a "fair statement" to describe oil export volumes through the Strait of Hormuz as growing, adding that shipments "will continue to rise" in the future.

U.S. Trade Deficit Narrowed by About Half One Year After Trump Announced "Liberation Day" Tariff Policy

The U.S. Department of Commerce reported Tuesday that the total trade deficit in goods and services for April was $55.9 billion, bringing the year-to-date deficit down by $213.5 billion compared to the same period last year—a 49% decrease. The monthly deficit narrowed by $70 billion from March and came in lower than the $56.1 billion forecast in a Dow Jones survey.