Nasdaq and S&P Retreat as AI and Semiconductor Stocks Fall Ahead of Earnings Week
Key Takeaways
- •Selling hit chip designers, equipment makers, memory producers, and AI infrastructure stocks across the sector.
- •The decline appeared driven by profit-taking, stretched valuations, and rotation rather than company-specific developments.
- •The Nasdaq is retreating toward its 100-day moving average, and the S&P 500 is trading just below a key trendline.
- •Microsoft and Meta report on Wednesday, while Apple and Amazon report on Thursday.
- •The week’s earnings releases are expected to influence views on AI demand, cloud spending, consumer demand, and mega-cap stock leadership.
The AI and semiconductor sector was among the market’s weakest areas on the day, as investors took profits ahead of another important week of earnings. Selling was broad-based across chip designers, equipment makers, memory producers, and AI infrastructure stocks, and the move appeared to reflect stretched valuations, elevated expectations, and sector rotation rather than company-specific news. With several of the group’s heaviestweights set to report this week, traders are treating the pullback as a way to reduce exposure before results, guidance, and capital-spending commentary add a new read on demand.
Among the session’s biggest decliners were SanDisk (SNDK), down $179.36, or 12.49%; Coherent (COHR), down $24.04, or 8.51%; Advanced Micro Devices (AMD), down $42.44, or 8.13%; Lumentum Holdings (LITE), down $60.65, or 7.95%; Lam Research (LRCX), down $22.86, or 7.49%; ASML Holding (ASML), down $127.44, or 7.25%; Astera Labs (ALAB), down $18.06, or 6.19%; Applied Materials (AMAT), down $33.01, or 6.16%; KLA Corp. (KLAC), down $12.46, or 5.92%; Micron Technology (MU), down $53.57, or 5.82%; NVIDIA (NVDA), down $11.34, or 5.48%; and Credo Technology (CRDO), down $10.74, or 5.04%.
Technically, the Nasdaq is pulling back toward its 100-day moving average at 24,733. The session low reached 24,774.87, while the 38.2% retracement of the advance from the March low stands at 24,707.22. The S&P 500 is also slipping below a trendline near 7,394 and is trading just under that level. Those levels are now being watched closely because they can help show whether the retreat stays contained or broadens into a larger market reset.
The week ahead is packed with major earnings reports, led by Microsoft and Meta on Wednesday, and Apple and Amazon on Thursday. Their results will be especially important for the AI trade, cloud spending, consumer demand, and the broader tone across mega-cap stocks, all of which have been key drivers of the market this year.
Tuesday’s schedule includes, before the open, Boeing, Coca-Cola, and PayPal, followed after the close by Visa, Ford, and Mondelez.
On Wednesday, before the open, investors will hear from Procter & Gamble, ADP, and SoFi. After the close, Microsoft, Meta, ARM, Qualcomm, Lam Research, Starbucks, and Robinhood are due to report.
Thursday brings before-the-open results from Mastercard and Bristol Myers Squibb, followed after the close by Apple, Amazon, Coinbase, and MicroStrategy.
Friday’s before-the-open lineup includes Exxon Mobil, Chevron, AbbVie, and Moderna.