Stock Market Today, June 4: Broadcom Drags on Nasdaq at Midday

At midday, the S&P 500 (SNPINDEX:^GSPC) had edged up 0.17% to 7,566.72 arsenic assemblage rotation offset spot weakness. The Nasdaq Composite (NASDAQINDEX:^IXIC) slipped 0.39% to 26,749.70 connected a semiconductor sell-off, and the Dow Jones Industrial Average (DJINDICES:^DJI) jumped 1.69% to 51,544.95 connected worth and vigor tailwinds.

Market movers

Chip stocks were this morning’s flashpoint arsenic Broadcom sank astir 15% connected a disappointing AI-chip outlook, dragging peers similar Micron Technology and Advanced Micro Devices. Healthcare stocks gained, with Eli Lilly up implicit 5% and NovoCure up astir 12% astatine midday.

What this means for investors

Broadcom’s guidance miss sparked AI profit-taking and pressured semiconductor stocks this morning. Some are saying this could beryllium the extremity of the sector’s unthinkable rally, with the State Street SPDR S&P Semiconductor ETF soaring by implicit 170% successful the past year.

However, nary rally tin spell connected forever, and these pullbacks don’t needfully bespeak cardinal problems. That said, billionaire capitalist Ray Dalio conscionable added his dependable to AI bubble warnings. He said radical confuse buying AI stocks with investing successful the exertion and warned that valuations whitethorn beryllium becoming excessive.

Investing successful a caller and booming exertion tin person superior semipermanent maturation potential, but — arsenic with the dot.com epoch — a batch of companies whitethorn fail. It is important to probe the champion AI stocks and measurement monolithic infrastructure spending against gross generation.

Should you bargain banal successful S&P 500 Index close now?

Before you bargain banal successful S&P 500 Index, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and S&P 500 Index wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $439,632!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,316,532!*

Now, it’s worthy noting Stock Advisor’s full mean instrumentality is 960% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest apical 10 list, disposable with Stock Advisor, and articulation an investing assemblage built by idiosyncratic investors for idiosyncratic investors.

See the 10 stocks »

*Stock Advisor returns arsenic of June 4, 2026.

Emma Newbery has positions successful NovoCure. The Motley Fool has positions successful and recommends Advanced Micro Devices, Broadcom, Eli Lilly, Micron Technology, and NovoCure. The Motley Fool has a disclosure policy.

Stock Market Today, June 4: Broadcom Drags connected Nasdaq astatine Midday was primitively published by The Motley Fool