US stocks mixed as tech and chip selloff outweighs gains

Major U.S. stock indexes closed mixed on Monday, June 22, as a sharp selloff in megacap technology and semiconductor stocks dragged down the S&P 500 and Nasdaq Composite, while the Dow Jones Industrial Average managed a modest gain. The divergent performance highlighted investor concerns over debt-fueled spending in the artificial intelligence sector and anticipation of upcoming inflation data.

The S&P 500 fell 0.37% to close at 7,472.79, and the Nasdaq Composite dropped 1.32% to 26,166.60. The Dow Jones Industrial Average rose 0.29% to 51,712.71, buoyed by gains in healthcare and industrial stocks. The Philadelphia SE Semiconductor index tumbled 7.9%, and the S&P 500 information technology sector fell 3.7%.

Alphabet shares fell more than 5% after the company announced that DeepMind Vice President John Jumper was leaving to join Anthropic. Other major technology stocks, including Meta, Amazon, and Microsoft, also declined. SpaceX shares plunged more than 16%, marking its biggest single-day drop since its recent debut, after the company launched its first-ever debt offering. Analysts noted that while AI optimism has fueled the market's recent rally, investors are increasingly...