Tech Rotation Knocks Nasdaq as Broader Market Holds Up
Stocks finished mixed Tuesday as investors rotated out of high-flying technology and semiconductor shares and into broader areas of the market tied to improving growth prospects.
Stocks finished mixed Tuesday as investors rotated out of high-flying technology and semiconductor shares and into broader areas of the market tied to improving growth prospects. The Nasdaq and S&P 500 closed lower, while the Dow edged higher late in the session, underscoring that the weakness was concentrated rather than fully risk-off. Treasury yields slipped, oil pared a sharp decline after renewed US-Iran tensions, and investors turned their focus to Wednesday’s May CPI report.
Key Headlines & Market Movers:
Tech Leadership Falters as Rotation Broadens: Chipmakers gave back recent gains after a powerful AI-driven run, with Marvell reversing sharply lower and broader semiconductor names under pressure. The move raised fresh questions about whether valuations in the market’s biggest winners can keep expanding after such a strong advance. Even so, most S&P 500 constituents rose, suggesting the broader market tone was more rotational than outright bearish.
Geopolitics Keep Oil Volatile: Crude prices were lower after President Trump suggested a US-Iran deal could be reached soon, but losses narrowed after he said Iran had attacked a US helicopter near the Strait of Hormuz and that the US would respond. The shift reinforced how quickly energy markets can reprice geopolitical risk. A renewed escalation in the region would likely complicate the benign-growth narrative supporting equities.
IPO Supply and Corporate News Add to Market Crosscurrents: SpaceX’s expected IPO drew strong institutional demand, but its size also raised concerns that investors may need to trim existing winners to fund participation. In corporate news, Bank of America pointed to stronger-than-expected trading momentum, GSK agreed to buy Nuvalent for $10.6 billion, and Vail Resorts cut guidance due to difficult weather conditions. Apple remained under pressure after its developer conference, adding to weakness across mega-cap tech.
S&P 500 Sector Performance
Looking Ahead
The key test now is Wednesday’s May CPI report, with investors watching whether inflation is firm enough to keep pressure on rates and challenge the equity rally’s broadening momentum. A hotter reading could extend volatility in growth stocks and keep Treasury yields elevated, while a softer print would help support the rotation into cyclicals and other non-tech areas. Markets also remain sensitive to developments in the Persian Gulf, oil prices, and the size and reception of upcoming AI-related equity issuance.
The Investment Management Group at Duncan Williams Asset Management is led by a team with extensive experience in investment management, financial planning, and client service. President David Scully, CFA®, CFP®, has more than 20 years of experience and is active in Memphis civic organizations. Chief Investment Officer Kyle Gowen, CFA®, CFP®, oversees investment strategy and is engaged with the local community. Investment Analyst Jack Eason, CFA®, provides research and supports charitable initiatives. The IMG team is committed to professional standards, client service, and community involvement. No statement is intended as an offer of investment advice or a guarantee of future results.
Ready to take action?
Let's talk about your financial future.
A local Memphis advisor is ready to listen. No pressure, no obligation.
