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Semiconductors slump, dragging down stocks

Chip stocks slumped, dragging down the S&P 500 and Nasdaq 100, as AI-linked names lost steam. Oil prices fell on optimism over a potential peace deal reopening the Strait of Hormuz. Moderna rose on organizational changes, while optics companies sank amid the AI rout.

read1 min views1 publishedJun 16, 2026

The S&P 500 and Nasdaq 100 fell as chip stocks and AI-linked names lost steam. Oil prices slid on the prospect of the Strait of Hormuz reopening.

A slide in chip stocks dragged down the S&P 500 and Nasdaq 100. The Russell 2000 also dropped. Oil prices continued to slide on optimism that a peace deal will allow more crude to return to global markets.

Information technology was today’s worst performer, and the only sector to underperform the S&P 500, while financials fared the best.

Moving higher:

Modernawas one of the best performers in the S&P 500 after announcing organizational changes in preparation forpotential product launchesin 2027 and 2028.Memory stocks

Western DigitalandSeagate Technology Holdingswere bright spots amid the AI rout.Lionsgatejumped on a rumor thatNetflixis in talks to acquire the studio.Eos Energy Enterprisessurged on thecommercial launch of its second battery production line.Imaxclosed at a fresh all-time high after the UK’s largest screen sold arecord-breaking 28,000 ticketsfor Christopher Nolan’s “The Odyssey” in 24 hours.Yum! Brandsedged up afterselling its Pizza Hut chainto private equity firm LongRange Capital for $2.7 billion.HYPE, the native token powering perpetuals exchange Hyperliquid and its underlying blockchain, rebounded toreclaim its all-time highpreviously set at the start of the month.

Moving lower:

Optics companies

Applied Optoelectronics,Lumentum, andCoherentsank as the AI trade lost steam.Olindropped after announcing anall-stock acquisition of Huntsmanin a deal valued at $2.4 billion.Huntsmanalsosank on the news.

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