Nasdaq Dips 4% Intraday Before Recovering to Close Down 1%

The Nasdaq Composite fell more than 4% by lunchtime before closing down 1% on Tuesday. The reversal came after traders sold high-beta names including Strategy (MSTR), AppLovin (APP), and Lumentum (LITE) around noon. Marvell dropped 10% in the session after jumping 10% the previous day on news it is joining the S&P 500.

The rest of the group strategist Ben Emons calls the “Parabolic 7” chip index had run up nearly 100% in a matter of weeks before the pullback. Money rotated into consumer staples and industrial names. Smucker jumped double digits.

Home Depot and Sherwin-Williams led gains in their sectors. Real estate, staples, and utilities finished the day higher. ” Brian Jacobsen of Annex Wealth described the prior tech advance as an “Icarus trade with the wings melting,” citing Alphabet’s recent capital raise and the upcoming SpaceX offering.

SpaceX is set to be the largest IPO ever on Friday and is already oversubscribed with multiple $10 billion orders. OpenAI and Anthropic have both confidentially filed for IPOs. A strong May jobs report released last week has pushed expectations for rate cuts further out.

Inflation data is scheduled for Wednesday and Thursday. Michael Monaghan of Founder ETFs said buyers were stepping back rather than rushing for the exits, which dropped prices faster than volume would suggest. S. Army Apache helicopter near the Strait of Hormuz. S. energy secretary said traffic through the Strait was picking up meaningfully.