The Nasdaq Composite closed down 2.21% on June 23, shedding 579.56 points to land at 25,587.04. The Philadelphia SE Semiconductor Index fell by as much as 7.9%, dragging chipmakers and AI-adjacent names into a deep red hole. Bitcoin slipped below $63,000 while ether dropped more than 4%.
What triggered the selloff
Three forces converged to make this an especially painful session. First, profit-taking, as tech stocks had been on a significant run. Second, growing skepticism around debt-financed AI spending. Third, expectations of a more hawkish Federal Reserve stance, which weighed heavily on growth stocks whose valuations depend on future cash flows discounted more aggressively when rates stay elevated.
Nvidia shares dropped approximately 3.6% during the selloff. Micron Technology had it worse, experiencing declines of over 10%.
The 30-day volatility metric in the Nasdaq 100 climbed to near multi-year highs heading into early July.
