Chip Stocks Drag Market Lower in Worrying Sign for Momentum Bet

High-flying chip stocks struggled through one of their most challenging sessions of the year on Tuesday in a dramatic reversal for some of the market’s best performers.

Broadcom Inc., Intel Corp. and Micron Technology Inc. were among the five biggest point decliners in the S&P 500 Index and technology-heavy Nasdaq 100 Index. Meanwhile, the Philadelphia Stock Exchange Semiconductor Index, which is up more than 60% in 2026, sank as much as 6.8%, its biggest intraday drop in over a year, before clawing back some of the decline to end down 3%.