By Lekha Gupta
Publication Date: 2026-06-09 18:30:00
The unchanged outlook triggered profit-taking across AI-related stocks, as investors who had bid shares to premium valuations looked for stronger signs of accelerating growth.
Defensive Rotation Weighs on Semiconductors
Tuesday’s decline appeared to be driven more by market sentiment. The Nasdaq Composite dropped 2.06%, while the S&P 500 lost 0.84%. Although most sectors traded higher, investors favored defensive areas such as real estate and healthcare over technology.
Market breadth remained positive, with nine of 11 sectors advancing. However, leadership came from defensive groups rather than high-growth technology stocks. The Real Estate Select Sector SPDR Fund gained 2.41%, while the Health Care Select Sector SPDR Fund rose 1.33%.
That shift in leadership weighed on semiconductor stocks, including Broadcom, which traded largely in line with weakness across the Nasdaq.
Technical Picture Remains Constructive
Despite the recent pullback, Broadcom continues to hold a favorable…
