Nasdaq Slips as Tech Stocks Stabilise, Oil Falls to Pre-War Levels Following US-Iran Agreement

Mumbai, June 24: US equities traded cautiously on Wednesday as investors weighed a recovery in semiconductor stocks against concerns about elevated technology valuations and the durability of the artificial intelligence (AI) rally. Meanwhile, crude oil prices plunged to their lowest levels since the Iran conflict began, following a breakthrough agreement between Washington and Tehran.

The Nasdaq Composite slipped 0.16% to 25,546.81, after opening at 25,578.62, while the broader S&P 500 was little changed, edging up 0.07% to 7,370.59. The Dow Jones Industrial Average outperformed its peers, rising 0.21% to 51,776.64, supported by gains in consumer discretionary stocks and the announcement that Alphabet will join the benchmark index.

The technology-heavy Nasdaq has lost more than 4% over the previous two trading sessions, reflecting investor concerns over stretched valuations in AI-linked companies. However, Wednesday’s session showed signs of stabilisation, particularly among semiconductor shares ahead of Micron Technology’s earnings report.

Semiconductor Stocks Attempt Recovery Ahead of Micron Earnings

Chipmakers rebounded after suffering steep declines earlier in the week. The VanEck Semiconductor ETF (SMH) gained around 2%, recovering part of Tuesday’s 7% decline. Micron Technology traded nearly unchanged at $1,051.77 after plunging 13% on Tuesday, wiping out gains accumulated during the previous two sessions. Despite the recent weakness, Micron shares remain among the strongest performers in the S&P 500 this year, having surged more than 270% since January.

Sandisk climbed almost 3% in premarket trading after falling 13% in the previous session, while the Roundhill Memory ETF (DRAM) advanced about 3%, following a 14% drop on Tuesday. Other semiconductor names also recovered. Intel gained more than 1% after declining 6% in the prior session, and Qualcomm rose over 1% following an 8% loss.

Also Read: How to Invest in the US Stocks From India?

Investors are closely watching Micron’s fiscal third-quarter results, scheduled after market close. Analysts surveyed by FactSet expect earnings of $20.83 per share on revenue of $35.75 billion.

Wedbush analysts have adopted a more optimistic stance, forecasting earnings of $22.84 per share on revenue of $38.5 billion, citing stronger memory pricing trends during the second quarter.

Options markets imply substantial volatility, suggesting Micron shares could move more than 11% in either direction by the end of the week. Such a move would place the stock near $1,169 on the upside or around $934 on the downside.

Oil Prices Sink as US-Iran Memorandum Eases Supply Concerns

Crude oil prices extended their recent slide, erasing most of the gains generated by months of geopolitical uncertainty. Brent crude futures fell more than 4% to around $73 per barrel, while US West Texas Intermediate crude dropped about 4% to nearly $71 per barrel, both returning to levels last seen before military strikes against Iran in February.

The decline follows the signing of a memorandum of understanding between the United States and Iran, which includes the reopening of the Strait of Hormuz and guarantees safe passage for oil tankers and commercial vessels.

Although some shipping companies remain cautious and are waiting for further confirmation that the agreement will hold, the market has largely interpreted the development as a positive signal for global energy supplies. Brent crude has now fallen approximately 27% during the past month.

Reflecting the changing outlook, Goldman Sachs lowered its Brent price forecasts to $86 per barrel for the third quarter and $80 per barrel for the fourth quarter. The International Energy Agency has also shifted its expectations, projecting an oil surplus in 2027, compared with earlier forecasts that anticipated tighter market conditions.

Alphabet Joins Dow Jones Index

S&P Global announced that Alphabet will replace Verizon Communications in the Dow Jones Industrial Average, effective from the opening of trading on Monday. Alphabet’s Class A shares gained roughly 1% following the announcement, extending gains supported by continued strength in digital advertising and AI-related businesses.

Verizon shares declined more than 1%, reflecting its removal from the 30-stock benchmark. The inclusion of Alphabet further increases the representation of large technology companies within the Dow, which has traditionally been dominated by industrial and financial firms.

AI Sector Faces Growing Questions

Not all AI-related companies benefited from Wednesday’s recovery. AI chipmaker Cerebras Systems tumbled more than 13% after warning that gross margins could narrow by as much as 10 percentage points during the current quarter.

Although the company reported that revenue doubled over the past year, investors reacted negatively to expectations of continued operating losses as production capacity expands.

Morgan Stanley Wealth Management’s Head of Market Research and Strategy, Dan Skelly, warned that weakness in technology stocks may reflect more than short-term technical selling. He highlighted increasing competition among AI model developers, falling rental rates for older graphics processing units, and Microsoft’s apparent interest in lower-cost AI models as signs that pricing pressures may be emerging across the industry.

JP Morgan Raises S&P 500 Target

JPMorgan upgraded its year-end target for the S&P 500 to 7,800 from 7,600, implying upside potential of nearly 6% from current levels.

According to Dubravko Lakos-Bujas, the bank’s Global Head of Market Strategy, earnings expectations have improved significantly, with consensus forecasts now projecting average earnings growth of roughly 20% annually over the next two years.

The bank believes easing tensions in the Middle East, resilient corporate earnings, and sustained enthusiasm for AI investments continue to support equity markets.

Elon Musk Falls Below Trillionaire Status

According to the Bloomberg Billionaires Index, Elon Musk’s net worth declined to $957 billion, causing him to lose trillionaire status slightly more than a week after achieving the milestone.

Musk remains the world’s wealthiest individual, well ahead of Google co-founder Larry Page, whose fortune stands at approximately $297 billion.

The decline reflects a 19% fall in SpaceX shares over the past five trading days and a 7% decline in Tesla stock during the same period.

US Housing Market Weakens

Sales of newly built homes dropped to a seasonally adjusted annual rate of 580,000 units in May, down almost 7% from 622,000 units a year earlier.

The slowdown marks a second consecutive month of disappointing activity. At the same time, the average selling price of a new home climbed to $540,600, representing a 7.8% increase from April and a 5% rise year-over-year.

Mortgage rates also moved higher, reaching 6.56% for a 30-year fixed loan, according to Mortgage News Daily.

Builders continue to offer incentives such as rate buydowns, closing-cost assistance, and home upgrades to attract buyers.

Individual Stocks in Focus

Take-Two Interactive advanced more than 2% in premarket trading after announcing that pre-orders for Grand Theft Auto VI will begin on Thursday. The game is expected to launch on 19 November for PlayStation 5 and Xbox Series X/S.

FedEx slipped around 2% despite reporting quarterly earnings above analyst estimates, as investors focused on margin pressure caused by rising transportation expenses and shifting trade policies.

BlackBerry rose approximately 2% after receiving an upgrade from Stifel analysts, who highlighted the company’s growing importance in AI-enabled applications for automobiles, robotics, factories and medical devices.

The stock has surged nearly 133% year-to-date, and six of the seven analysts covering the company currently maintain either a buy or strong-buy rating.

Treasury Yields and Gold Prices

US Treasury yields moved lower as concerns over the technology selloff eased and oil prices declined.

The 10-year Treasury yield fell to 4.42% from 4.50%, while the 2-year Treasury yield remained near 4.16%, close to its highest level of the year.

Gold prices also weakened. August gold futures traded near $3,987.30 per ounce, slipping below the $4,000 mark for the first time since November 2025.

The decline in gold prices has been attributed to investor liquidations and a stronger US dollar, with the Dollar Index rising to 101.60.

Market Snapshot

The Nasdaq Composite traded within a range of 25,546.81 to 25,749.06, with volumes reaching 3.79 billion shares during early trading.

Among Nasdaq 100 constituents, Booking Holdings gained 8.21%, Airbnb rose 3.47%, and Amazon advanced 1.69%. In contrast, Western Digital declined 4.60%, Marvell Technology lost 4.50%, and Arm Holdings fell 4.76%.

Energy stocks remained under pressure within the S&P 500, with Exxon Mobil declining 2.13%, Chevron losing 2.52%, and Occidental Petroleum retreating sharply as crude prices continued to weaken.

For investors, Micron’s earnings report remains the key near-term catalyst, while developments surrounding the US-Iran agreement and trends in AI spending are likely to determine market direction over the coming weeks.

The rebound in technology stocks after Tuesday’s selloff suggests investors are buying at lower levels, though caution persists ahead of Micron’s earnings. Lower oil prices support consumer spending and company profits. Alphabet’s Dow inclusion reflects tech’s growing market influence, while higher Treasury yields signal expectations of tighter Federal Reserve policy.

Source

• https://www.nasdaq.com/

• spglobal.com/spdji/en/indices/equity/sp-500/

• https://www.dowjones.com/