Dow Jones and Nasdaq Stumble as Tech Stocks Sell Off, but Micron (MU) Earnings Offer Late Lift
U.S.Strong after-hours earnings from Micron offered a potential stabilizing force for tech, while U.S. equities dropped as investors locked
Quick overview
- U.S. equities fell sharply as investors took profits from a recent AI-led rally, particularly impacting technology stocks.
- The Nasdaq Composite experienced the largest decline, dropping 410.71 points, while the S&P 500 and Dow Jones also closed lower.
- Despite the selloff, Micron Technology reported strong earnings after hours, potentially stabilizing the tech sector.
- Capital rotated into defensive sectors like Energy and Consumer Staples, contrasting with the significant losses in Information Technology.
Live DOW Chart
Strong after-hours earnings from Micron offered a potential stabilizing force for tech, while U.S. equities dropped as investors locked in profits from the AI-led rise, bringing the Nasdaq significantly lower.
Tech-Led Selloff Pressures Major Indexes
U.S. markets ended the session broadly lower, with selling pressure heavily concentrated in technology and growth stocks that have dominated the rally for much of the year. The Dow Jones Industrial Average slipped 243.51 points, or 0.51%, to close at 47,870.75. Losses were more pronounced in the broader market, with the S&P 500 falling 78.34 points, or 1.15%, to 6,721.92.
Nasdaq Chart Daily – Heading to the Second Support
The Nasdaq Composite bore the brunt of the decline, sliding 410.71 points, or 1.78%, to 22,700.75, as traders moved aggressively out of semiconductors and AI infrastructure names.
Dow Jones Chart Daily – The Trend Remains Strongly Bullish
AI Leaders Bear the Brunt of Profit-Taking
Selling was concentrated in high-profile technology stocks such as Nvidia, Palantir, AMD, and Oracle—names that have led the bull market for months. Tesla also featured prominently, with the stock pulling back after briefly printing a fresh record high earlier in the session, as investors opted to take profits.
The scale of the decline suggested a broader reassessment of stretched valuations rather than company-specific concerns, with many AI-linked stocks falling more than 5% on the day.
Sector Rotation Favors Energy and Defensives
As technology stocks slid, capital rotated into more defensive areas of the market. The Energy sector stood out, rising 2.12% as higher oil prices and inflation hedging supported the group. Materials and Consumer Staples also managed modest gains, reinforcing the defensive tone.
In contrast, Information Technology was the weakest sector, down 2.14%, followed by Industrials, which fell 1.66%.
Micron Earnings Offer Late Optimism
Not all news was negative for tech. After the closing bell, Micron Technology delivered earnings that exceeded expectations, sending its shares sharply higher in after-hours trading. The strong results may help restore confidence in the semiconductor space and could provide near-term support for the Nasdaq in the next session.
Market Overview: A Sea of Red for Growth
Wall Street closed firmly in the red today, with growth stocks bearing the brunt of the selling pressure. The major indices stumbled as the “risk-off” sentiment that plagued the session accelerated into the close.
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Dow Jones Industrial Average (DJI): Down -243.51 points (-0.51%) to 47,870.75.
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S&P 500 (SPX): Down -78.34 points (-1.15%) to 6,721.92.
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Nasdaq Composite (IXIC): The biggest loser, falling -410.71 points (-1.78%) to 22,700.75.
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Russell 2000 (RUT): Small caps were not spared, dipping -28.72 points (-1.14%) to 2,490.58.
The Losers: AI & Chip Stocks hammered
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Nebius NV (NBIS): -6.79%
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Super Micro Computer (SMCI): -5.64%
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ASML (ASML): -5.64%
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Palantir (PLTR): -5.58%
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Oracle (ORCL): -5.46% (Hitting fresh lows)
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AMD: -5.27%
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Tesla (TSLA): -4.57%
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Broadcom (AVGO): -4.48%
The Winners: Defensives & Earnings Plays
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Occidental Petroleum (OXY): +4.39% (Leading the energy charge)
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Chipotle (CMG): +3.80%
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General Mills (GIS): +3.45% (Classic defensive play)
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GameStop (GME): +3.37%
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Gilead Sciences (GILD): +2.18%
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Adobe (ADBE): +1.91%
After-Hours Spotlight: Micron (MU) to the Rescue?
Just as the sentiment seemed bleakest for tech investors, Micron Technology (MU) released its Q1 2026 earnings report immediately after the closing bell, delivering a significant beat that could stabilize the sector tomorrow.
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Adjusted EPS: $4.78 (vs. expectation of $3.84)
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Revenue: $13.6 Billion (vs. expectation of $12.78 Billion)
Micron’s strong performance suggests that demand for memory chips—driven by the very AI data center buildout that investors were selling today—remains robust. Traders will be watching closely to see if this result can spark a relief rally in Nvidia, AMD, and Broadcom during tomorrow’s session.
Shares of Micron are up 6.65% in after-hours trading. Nvidia is up 0.39%, Broadcom is trading up 0.55%, Intel is up 0.36%, and AMD is up 0.51%. On the day, Micron tumbled -2.93%, Nvidia was down -3.81%, Broadcom was down -4.48%, Intel is down -3.38%, and AMD was down -5.29%.
For now, markets appear to be transitioning from momentum-driven buying to a more selective, risk-aware phase.
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