The semiconductor sector endured its most brutal single-day rout in six years on June 6, 2026, dragging major indexes sharply lower across Wall Street.
The iShares Semiconductor ETF dropped 10% on the day, marking its worst performance since March 2020, as panic selling swept through the once-dominant chip trade.
Marvell Technology (MRVL) fell more than 16%, while Micron Technology (MU) dropped 13% after already losing 8% in the prior session on Thursday.
Intel (INTC) and Advanced Micro Devices (AMD) each fell around 11%, adding to the sense that the sector-wide damage was broad and indiscriminate.
Broadcom (AVGO) closed nearly 8% lower after having already tumbled more than 12% on Thursday, compounding losses for shareholders who had ridden the AI chip wave higher.
Nvidia (NVDA) dropped 6%, pushing the company below a $5 trillion market valuation, with the stock alone erasing nearly $280 billion in market value in a single session.
Chip stocks were on track to wipe out $1 trillion in combined market value, as Taiwan Semiconductor Manufacturing, Broadcom, and Micron were each down more than $100 billion.
The Nasdaq Composite fell 4.18%, closing at 25,709.43 for its biggest single-day decline since April 2025, while the S&P 500 dropped 2.64% to end at 7,383.74.
The Dow Jones Industrial Average lost 695.15 points, or 1.35%, settling at 50,866.78, as the broader market absorbed the fallout from the chip sector’s collapse.
The catalyst for the sell-off was not entirely clear, though Broadcom’s failure to raise its AI chip outlook following Wednesday earnings drew early criticism from investors.
Broadcom’s next-quarter AI revenue guidance came in below elevated expectations even as overall revenue guidance topped estimates, undermining confidence in the group.
A stronger-than-expected jobs report for May sent Treasury yields spiking, adding further pressure to high-valuation growth stocks already under scrutiny.
The S&P 500 posted its first negative week in 10, losing more than 2% across the five-day stretch, a significant reversal for a market that had held remarkably steady.
“Investors had been kind of hovering with their finger over this sell button,” said Mark Hackett, chief market strategist at Nationwide, explaining the speed and scale of the losses.
“Not necessarily to get out. But if you’ve owned some of these semiconductor names through the last two months, you’re very out of whack with your long-term positioning goal. You need to take profits at some point,” Hackett added.
