By Bill Stone
Publication Date: 2026-06-07 11:00:00
Broadcom shares came under pressure after its earnings report failed to lift 2027 AI revenue guidance, helping spark a broader sell-off in AI and semiconductor stocks. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
Despite a much better-than-expected monthly jobs report and the S&P 500 hitting new highs earlier in the week, stocks sold off sharply last week. The pain was primarily in technology and artificial intelligence (AI) related stocks.
Market Reaction
As would be expected in a tech-focused sell-off, the Magnificent 7 underperformed last week. The relatively small 0.5% decline in the average stock price shows that the stock swoon was not very broad, but centered on tech and AI-related companies.
Market Performance
Glenview Trust, Bloomberg
The proximate cause of the sharp decline in tech and AI stocks was Broadcom’s (AVGO) quarterly earnings report on Wednesday. While sales and earnings for the quarter were…
