Broadcom led the retreat in semiconductor stocks, tumbling 12.6% after missing revenue targets. This decline rattled investors who have driven the chip sector up more than 92% this year. Paul Nolte, a strategist at Murphy & Sylvest, noted that while investors are currently buying the dip, the broader market is beginning to scrutinize the high valuations that have defined the AI-driven rally. Other chipmakers, including Advanced Micro Devices, Micron Technology, and Qualcomm, also saw losses between 2.6% and 7.7%.

Economic headwinds tempered the overall market mood. Initial jobless claims rose by 6.1%, and corporate layoffs surged 11% in May, with nearly 40% of those job cuts linked to artificial intelligence integration. Despite this, the Dow climbed 874.86 points, or 1.73%, to close at 51,561.93. The S&P 500 managed a 0.41% gain, while the Nasdaq Composite slipped 0.09% to 26,830.96. Meanwhile, anticipation continues to build for the June 12 SpaceX market debut, as the firm initiates an investor roadshow aiming for a $1.75 trillion valuation.