By StockStory
Publication Date: 2026-06-10 19:35:00
What Happened?
Shares of fabless chip and software maker Broadcom (NASDAQ:AVGO) fell 5.1% in the afternoon session after the CPI print of 4.2% annual inflation (the hottest since 2023) revived the rate hike narrative.
Markets began to fully price a December Fed rate hike, and semiconductor stocks, which price on earnings years out, reprice faster than most sectors when discount rates move. The SpaceX IPO added secondary pressure: the company closed investor orders ahead of its debut at a $1.77 trillion valuation, and MSC identified chip names among the holdings facing the largest forced outflows as investors reallocate to fund the listing. Trump’s mid-session Iran escalation, pledging to “attack very hard”, drove the Dow to session lows, sealing the risk-off tone.
After the initial drop, the shares shed some of the losses and rose to $373.74, down 4.8% from the previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy…
