US Stocks Close: Nasdaq Falls 2.21%, Philadelphia Semiconductor Index Drops Over 8%; Micron Plunges 13% in a Single Day, Memory and Chip Stocks Lead Declines

TradingKey - On June 23 ET, with core PCE inflation data and Micron's earnings report imminent, the market opted to sell off and wait on the sidelines. The three major indices all declined, with QQQ plummeting over 3%, and memory and chip stocks leading the losses.

At the close, the Dow Jones Industrial Average fell 0.09% to 51,666.84 points; the Nasdaq Composite Index dropped 2.21% to 25,587.04 points; and the S&P 500 Index declined 1.44% to 73,665.46 points.

Tech stock performance

Micron (MU) plummeted 13.18% in a single day, closing at $1,051.77.

According to media reports, SK Hynix is slowing down the pace of its mass production expansion for sixth-generation High Bandwidth Memory (HBM4) chips, and is shifting resources back toward the commodity DRAM market. The report cited a person familiar with SK Hynix's internal affairs as saying that given the ongoing downward revisions in production forecasts for Nvidia's next-generation "Rubin" chips, the company's management sees no need to accelerate the transition of production lines to HBM4. These comments have cast doubt on the demand outlook for high-end AI infrastructure, putting pressure on Nvidia and its related supply chain.

On the other hand, Micron is set to release its earnings report tomorrow after the market close. The market views it as a "touchstone" for the AI supply chain, which will influence investor judgment on the AI hardware chain, semiconductor cycle, memory price hikes, and the valuation of high-flying tech stocks.

Among mega-cap tech stocks, Microsoft (MSFT) rose 1.80%, SpaceX (SPCX) rose 0.98%, and Amazon (AMZN) rose 0.57%; TSMC (TSM) fell 6.69%, Tesla (TSLA) fell 5.79%, Nvidia (NVDA) fell 4.15%, Broadcom (AVGO) fell 3.06%, Google (GOOGL) fell 1.03%, Apple (AAPL) fell 0.91%, and Meta Platforms (META) fell 0.29%.

[Source: FutuBull]

The Philadelphia Semiconductor Index fell 7.87% to close at 13,482.51 points, with all 30 of its components declining. Arm Holdings (ARM) fell 10.14%, Lam Research (LRCX) fell 9.33%, KLA Corp (KLAC) fell 9.17%, Applied Materials (AMAT) fell 8.48%, Texas Instruments (TXN) fell 8.40%, ASML (ASML) fell 7.82%, Intel (INTC) fell 6.14%, and AMD (AMD) fell 5.76%.

Memory chip stocks plummeted, with SanDisk (SNDK) falling 13.64%, Micron Technology (MU) falling 13.18%, Western Digital (WDC) falling 8.45%, and Seagate Technology (STX) falling 5.07%.

Quantum computing stocks bucked the trend to rise, with Arqit Quantum (ARQQ) surging 35.57%, Quantinuum (QNT) climbing 13.46%, Infleqtion (INFQ) up 12.32%, SEALSQ Corp (LAES) up 7.74%, and IBM Corp (IBM) up 5.02%.

Corporate News

Qualcomm Plans to Acquire AI Chip Startup Modular Inc. for $4 Billion

Qualcomm is in advanced talks to acquire artificial intelligence chip startup Modular Inc. in a deal valued at approximately $4 billion, according to people familiar with the matter. The sources said an announcement could come in the next few weeks, though a final agreement has not yet been reached and negotiations could still fall through or terms could change.

Meta Launches New Smart Glasses, Pushing Wearable AI Forward

Meta announced on its official website that the company, in partnership with EssilorLuxottica, has launched the new 'Meta Glasses' series. Featuring a fresh design, the series includes three frame styles with a starting price of just $299 (approximately RMB 2,029), making it at least $80 cheaper than the company's second-generation entry-level Meta Ray-Ban smart glasses.

While the overall smart glasses market remains relatively small, Meta and EssilorLuxottica's products have established a dominant position. Since their initial launch in 2021, cumulative sales have reached millions of pairs, with an estimated market share of over 80%.

SpaceX's High-Grade Bond Offering Draws $89 Billion in Orders

According to Bloomberg, SpaceX's debut bond offering in the U.S. investment-grade debt market met with exceptionally strong demand. The five-tranche offering drew a total of $89 billion in orders, oversubscribed by more than four times, ranking among the year's largest U.S. corporate bond issuances. The offering, sized at $20 billion to $25 billion, ultimately secured $89 billion in orders—over four times oversubscribed—with the pricing spread narrowing by 25 basis points from initial guidance to 175 basis points, and the longest-dated tranche maturing in 2056.

Meta Platforms Develops Prediction Market App Arena

Meta is officially entering the red-hot prediction market space, with CEO Mark Zuckerberg leading a small team to develop a standalone app named Arena, making it the latest tech giant to enter the sector. The product directly competes with leading platforms like Kalshi and Polymarket but takes a differentiated approach: it does not allow real-money betting, instead centering on a lightweight points system, and focuses on interactive discussions around real-time events such as sports and politics to further enhance the ecosystem of its social products.

Alibaba Sues U.S. Department of Defense to Seek Removal from Blacklist

Alibaba has formally sued the U.S. Department of Defense, with the primary goal of having itself removed from a blacklist of 'Chinese military-backed companies.' Alibaba argues that the Pentagon failed to provide substantive evidence or reasonable explanations throughout the designation process, calling it an arbitrary administrative action that violates the constitutional principle of due process and infringes on the company's legitimate right to free speech. Consequently, the company is asking the judicial system to overturn the designation.

Industry & Macro News

Trump Signs Executive Order to Accelerate Quantum Computing R&D

U.S. President Donald Trump signed an executive order on Monday, calling for the accelerated development of high-performance quantum computers for scientific research and a swift upgrade of government systems' capabilities to counter related cybersecurity threats, thereby cementing the U.S. leadership in this critical technology race.

The Trump administration has directed federal agencies to collaborate closely with the private sector and academia to deploy an advanced quantum computer with practical research capabilities by 2028. Furthermore, the executive order outlines plans to deploy quantum sensors and quantum networks within the next five years to replace or supplement existing GPS systems in complex environments.

Trump Says U.S. Economic Recovery Is Imminent

U.S. President Donald Trump pitched his protectionist trade platform to voters in the key swing state of Pennsylvania. Having reached an interim agreement with Iran to end the war, Trump has shifted his focus back to U.S. economic issues. In his speech, he promised that an American economic recovery is just around the corner, adding that with the end of the war, the U.S. economy is poised to soar to unprecedented heights.

Trump Says Iran Has Fully Agreed to Long-Term Nuclear Inspections

U.S. President Trump posted that despite Iran's protests and contrary false claims, coupled with the fake news media's relentless efforts to downplay the U.S. victory as insignificant, Iran has fully and completely agreed to long-term, highest-level nuclear inspections.

Oman and Iran to Jointly Draft Navigation Management Agreement

A joint statement from Oman and Iran indicated that Oman supports the Islamabad memorandum of understanding signed between the U.S. and Iran, emphasizing the importance of continued dialogue and coordination to ensure its successful implementation. As two littoral states sharing the Strait of Hormuz, Oman and Iran reaffirmed their commitment to securing safe passage through the strait in accordance with international law, while emphasizing their respective sovereignty and sovereign rights over the territorial waters of the Strait of Hormuz.