S&P 500, Nasdaq fall as tech selloff resumes

U.S. stock markets opened lower on Tuesday as technology shares extended their selloff, with the S&P 500 and Nasdaq declining amid renewed geopolitical tensions. The Cboe Volatility Index surged to its highest level since April 7, reflecting heightened market uncertainty. President Donald Trump’s statement that Iran had shot down a U.S. Apache helicopter in the Strait of Hormuz added to concerns, despite earlier reports of a temporary truce between Iran and Israel. The S&P 500 tech index fell over 4% before recovering slightly, while the Philadelphia SE Semiconductor Index dropped as much as 8.6% after an early rebound. The Nasdaq Composite closed down 0.97%, and the S&P 500 lost 0.26%, though the Dow Jones Industrial Average rose modestly by 0.17%. Investors also reacted to a stronger-than-expected jobs report, increasing expectations of further Federal Reserve rate hikes. Market strategists noted a shift in momentum, with tech stocks facing pressure after Broadcom’s disappointing forecast fueled concerns about high valuations in the sector. Shares of Broadcom fell 1.1%, while Nvidia declined slightly, and Ciena dropped 5.9% after announcing a convertible debt offering. The Nasdaq saw more declines than gains, with 2,378 stocks falling compared to 2,494 rising. Upcoming economic reports, including May’s consumer price data, will provide insight into inflation trends amid rising energy costs linked to Middle East conflicts. Additionally, SpaceX’s highly anticipated IPO, targeting a $1.75 trillion valuation, could introduce further volatility as investors assess its impact on high-growth tech stocks. Market activity remained elevated, with 24.77 billion shares traded, above the 20-day average.