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June 26, 2026 - 18:44
5 minutes
(Bloomberg) — Wall Street is wrapping up a chaotic week with mild gains in stocks amid intense volatility in high-profile technology names, which is testing investors’ nerves after a torrid run from war-fueled lows.Another burst of selling pummeled chipmakers, whipsawing equities on concerns over whether vast investments in artificial intelligence will justify hefty valuations. Conversely, most shares in the S&P 500 rose amid signs of economic strength and a plunge in oil prices. In a sign of rotation, the benchmark’s equal-weighted version — which strips out market-value biases — hit all-time highs.“Investor sentiment has turned increasingly pessimistic amid the technology selloff and sharp rotation, but the broader market is telling a different story,” said Mark Hackett at Nationwide. “Rather than the start of a major downturn, this looks more like a period of consolidation beneath the surface.”He noted that the fundamental backdrop remains supportive, with consumers still spending, businesses investing, and earnings expectations continuing to move higher. While the pullback in technology will test investors’ buy-the-dip conviction, periods like this often set the stage for the next leg of the bull market, Hackett added.A multitude of headlines this week served as a reality check on the durability of the tech rally, with a report that OpenAI could postpone plans to go public weighing on sentiment. News that Samsung Electronics Co. and SK Hynix Inc. are preparing to announce hundreds of billions of dollars worth in new investments on Monday also added to concerns.The violent swings in high-profile tech names in recent days have underscored how quickly the optimism surrounding the global AI trade is giving way to doubts over whether the rally can keep running. While there’s a predominant view that the AI trade isn’t over, the idea of everything going up in a straight line appears to be waning by the day.After a remarkable rally in recent months, investors have become increasingly sensitive to stretched valuations and rising infrastructure costs associated with AI, according to Fawad Razaqzada at Forex.com.“While some degree of profit-taking was perhaps inevitable, the latest moves also raise broader questions about whether expectations for the sector have simply run too far ahead of commercial reality,” he said.At Gabelli Funds, John Belton says he would characterize the recent tech moves as more of a “pause” than a “selloff.” Chipmakers are still within a striking distance of all-time highs while software firms have given back the majority of a rally staged earlier in the quarter. Meanwhile, megacaps have failed to keep up with the market despite strong fundamentals.“Are the hyperscalers set up to be left behind in the AI era? I would not count them out and believe that they are building platforms which will help drive AI diffusion across the economy for years to come,” Belton added.Corporate Highlights:SoftBank Group Corp. slumped on concerns that OpenAI may hold off on an initial public offering until next year and delay returns for its Japanese backer. Samsung Electronics Co. and SK Hynix Inc. are preparing to announce hundreds of billions of dollars worth in new investments on Monday, according to South Korean media reports this week. Onsemi has agreed to buy Synaptics Inc., a firm that specializes in semiconductors for smart devices, in an all-stock deal that values the company at about $6.2 billion. Boeing Co. secured an order from China Southern Airlines Co. valued at $3.62 billion, marking an important win for the US manufacturer after seeing orders dry up from Asia’s largest aviation market in the past decade. Some of the main moves in markets:StocksThe S&P 500 rose 0.2% as of 12:40 p.m. New York time The Nasdaq 100 fell 0.4% The Dow Jones Industrial Average was little changed The MSCI World Index was little changed Philadelphia Stock Exchange Semiconductor Index fell 4% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro rose 0.2% to $1.1388 The British pound rose 0.1% to $1.3207 The Japanese yen was little changed at 161.74 per dollar CryptocurrenciesBitcoin rose 1.4% to $60,169.89 Ether rose 1.6% to $1,583.39 BondsThe yield on 10-year Treasuries declined two basis points to 4.37% Germany’s 10-year yield was little changed at 2.85% Britain’s 10-year yield advanced three basis points to 4.73% The yield on 2-year Treasuries declined four basis points to 4.08% The yield on 30-year Treasuries was little changed at 4.86% CommoditiesWest Texas Intermediate crude fell 4% to $69.03 a barrel Spot gold rose 1.4% to $4,084.36 an ounce ©2026 Bloomberg L.P.
