The Nasdaq Composite plunged 4.18% on June 5, closing at 25,709.43 in its worst single-day performance since April 2025. The S&P 500 wasn’t spared either, shedding 2.64% to finish at 7,383.74. The catalyst: a growing chorus of investors who are starting to wonder whether the AI trade has been writing checks the technology can’t cash.
On June 23, the bleeding continued with the Nasdaq falling over 2% and the S&P 500 losing approximately 1.4%, as chip stocks in particular remained under sustained selling pressure.
The AI confidence crack
Semiconductor and AI-adjacent stocks bore the worst of the damage, with investors increasingly skeptical about sustained demand and long-term profitability.
Crypto feels the tremor, but stays on its feet
