Nasdaq Close Report, June 16, 2026: Tec‌‌h Ral‌ly Stalls as Nasdaq Declines 1.15% to 26,376; Dow Hits Record 52,016 on Iran Pe‌‌ace Dea‌‌l Opti‌‌mi‌‌s‌m and Oil Plunge

Mu‌‌mb‌‌ai, Jun‌‌e 17: Wall Street experienced a volatile trading session on Tuesday with the tech-heavy Nasdaq Composite (^IXIC) falling 307.60 points, or 1.15%, to finish at 26,376.34, whereas the blue-chip Dow Jones Industrial Average (^DJI) surged 345.54 points, or 0.67%, to end its session at a new record high of 52,016.57. This divergence reflected a pronounced rotation away from expensive tech companies towards industrial and cyclical stocks amid falling oil prices and fading optimism about a US-Iran peace agreement. 

The S&P 500 (^GSPC) lost 41.85 points or 0.55% to close at 7,512.44, as investors weighed geopolitical developments against the backdrop of the Federal Reserve’s two-day policy meeting, which began Tuesday. Investors remained cautious in anticipation of Wednesday’s interest rate decision, the first to be held under newly appointed Federal Reserve Chair Kevin Warsh, despite optimism over the reopening of the Strait of Hormuz that drove crude oil prices down to three-month lows. 

Do‌‌w H‌‌its Re‌‌cord 52‌‌,016 Wi‌‌le‌‌ Nasdaq Slides 1.15% as Chip Stocks Plunge Up to 0% 

The Nasdaq’s declined was primarily attributed to a severe sell-off in the semiconductor stocks, as reflected in the 6% decline in the Philadelphia Semiconductor Sector Index (SOX), thus completely erasing Monday’s gains. The worst performer among the semiconductor stocks, however, was Intel Corporation (INTC), which plunged 8.45% to close at $117.05, followed by Advanced Micro Devices (AMD) and Marvel Technology (MRVL), which declined 7.30% and 9.92%, respectively. 

Other chipmakers suffered heavy losses, with Micron Technology (MU) falling 6.18%, KLAC (KLAC) sliding 7.46%, and Broadcom (AVGO) declining 4.37%. The sector-wide rout reflected profit-taking after a blistering rally on Monday, as investors rotated out of artificial intelligence trade winners into value-oriented names. 

Meanwhile, the Dow’s record close was buoyed by financial and industrial giants, with JPMorgan Chase (JPM) surging 3.69% to $331.18, Visa (V) climbing 2.92% to $333.26, and Home Depot (HD) advancing 2.20% to $337.07. Caterpillar (CAT) gained 1.31% to $946.21, while Goldman Sachs (GS) rose 1.37% to $1,090.94, reflecting renewed confidence in cyclical sectors as oil prices retreated. 

Oil Prices Plunge 5% to Three-Month Low as US-Iran Deal Promises Hormuz Reopening by Friday 

Brent crude futures fell $4.21, or 5.1%, to settle at $78.96 a barrel, while US West Texas Intermediate (WTI) crude dropped $4.70, or 5.8%, to $76.05, marking the first time Brent has traded below $80 since March 3. The sharp decline came as details emerged from the US-Iran framework agreement, which reportedly allows Tehran to immediately begin selling oil and secures the reopening of the Strait of Hormuz to commercial traffic by Friday. 

However, shipping analysts expressed scepticism about the timeline, with many projecting a return to prewar traffic levels of only 50% at best. A senior US official insisted the strait would return to normal operations “definitely within 30 days,” but investors weighed warnings that demining and logistical challenges could take months to resolve. 

The oil price collapse provided a powerful tailwind for consumer cyclicals and industrials, as lower energy costs eased inflationary pressures and boosted discretionary spending prospects. American Airlines Group (AAL) rose 1.62% to $15.71, while SoFi Technologies (SOFI) advanced 3.39% to $17.71 on the back of improved consumer sentiment. 

Fed Meeting Under Warsh: Markets Price in Rate Hike by Year-End as Inflation Fears Persist 

Investor attention remained squarely fixed on the Federal Reserve, with policymakers commencing their June meeting on Tuesday. The central bank is widely expected to hold its benchmark interest rate steady at 3.5% to 3.75% on Wednesday, but traders are now pricing in at least one quarter-point hike by the end of the year, driven by the inflationary impact of the Iran conflict on energy prices. 

The 10-year Treasury yield dipped 1.6 basis points to 4.453% , while the two-year yield inched up 0.4 basis points to 4.068% , reflecting cautious positioning ahead of the Fed’s policy statement. New Chair Kevin Warsh, overseeing his first meeting, has signalled a preference for more limited communication with markets, raising the prospect of a tighter-lipped central bank that could reduce forward guidance. 

The US dollar index (DXY) slipped 0.06% to 99.57, as the greenback weakened against the euro and yen. The Japanese yen traded at 160.46 per dollar after the Bank of Japan raised its benchmark rate by 25 basis points to 1%, its highest level since 1995, in a bid to curb inflationary risks stemming from the Middle East conflict. 

SpaceX (SPCX) Surges 4.8% After $60 Billion Cursor Acquisition, Briefly Tops Microsoft’s Valuation 

In a landmark corporate development, Space Exploration Technologies Corp (SPCX) shares rallied 4.83% to $201.80, extending its post-IPO rally after the Elon Musk-led company announced it would acquire Anysphere, the software firm behind AI coding agent Cursor, for $60 billion in a stock transaction. 

The announcement came days after SpaceX’s blockbuster Nasdaq debut, which valued the company at more than $2 trillion. The stock briefly surpassed Amazon’s (AMZN) $2.64 trillion market capitalisation and even topped Microsoft’s (MSFT) $2.92 trillion valuation before trimming gains, making SpaceX the fourth most valuable company in the world at its peak. The company’s market capitalisation currently stands at approximately $2.85 trillion. 

The Cursor acquisition, for which SpaceX secured an option in April, positions the company to ramp up its presence in the enterprise AI market. Trading in SpaceX options kicked off with record volume on Tuesday, with more than half a million contracts changing hands in the first hour, making it the most heavily traded name ever among companies on their first day of options trading. 

Mega-Cap Tech Stocks Mixed as Alphabet, Apple Gain While Nvidia, Microsoft Slide 

Among mega-cap technology names, performance was notably mixed. Alphabet (GOOGL) rose 1.09% and Alphabet (GOOG) advanced 1.12%, while Apple (AAPL) gained 0.96% to $299.34 and Meta Platforms (META) climbed 1.15%. However, Nvidia (NVDA) slid 2.36% to $207.36, Microsoft (MSFT) fell 1.44% to $393.99, and Tesla (TSLA) dropped 1.55%. 

Amazon (AMZN) closed flat at $246.15, while Netflix (NFLX) tumbled 3.56% as investors rotated out of growth stocks. Western Digital (WDC) bucked the trend, jumping 4.23% to $681.08, extending Monday’s 16% surge after Morgan Stanley raised its price target to $650 from $488. 

Snap (SNAP) Plunges 9.7% as $2,195 AR Glasses Launch Fails to Impress Amid Activist Pressure. 

Snap Inc (SNAP) shares plummeted 9.72% to $5.16 after the company unveiled its first augmented-reality glasses for consumers, priced at a hefty $2,195. The launch of Specs marks a major bet by the social media minnow on a device category that has proven challenging even for Apple, whose Vision Pro headset struggled to gain traction. 

The launch comes at a critical moment for Snap, whose advertising business faces mounting pressure from larger rivals such as Meta and Google. An activist investor has demanded the company spin off or shut down the cash-burning Specs unit, which has absorbed more than $3.5 billion in investment. The company plans to deploy about 100 robotaxis in a major US city starting in 2027, with ambitions to scale the fleet to roughly 17,000 over the next five years. 

Mobileye (MBLY) Rises 2% on US Robotaxi Service Plans for 2027 as Competition Intensifies. 

Mobileye Global (MBLY) shares rose more than 2% after the Jerusalem-based self-driving technology supplier announced plans to launch its own robotaxi service in the United States next year. The move puts Mobileye in direct competition with Alphabet’s Waymo, Amazon’s Zoox, and Tesla’s self-driving vehicles, as these companies jostle to emerge as leaders in a market with enormous potential. 

The company plans to deploy about 100 robotaxis in a major US city starting in 2027, with ambitions to scale the fleet to roughly 17,000 over the next five years. Mobileye, which provides advanced driver-assistance systems to automakers, is positioning itself to capture a share of the autonomous vehicle market while continuing to serve its traditional customer base. 

The Nasdaq’s 1.15% decline highlights ongoing volatility in tech stocks as investors rotate toward cyclicals amid plunging oil prices and geopolitical developments. The Dow’s record close underscores the divergent performance between value and growth sectors. Wednesday’s Fed rate decision and the upcoming signing of the US-Iran agreement will likely determine the market’s next directional move, with oil prices and Treasury yields remaining critical indicators to monitor. The ability to implement the Hormuz reopening and manage inflationary pressures will shape near-term sentiment across asset classes. 

Source 

• https://www.nasdaq.com