{"id":6496,"date":"2026-06-09T22:27:40","date_gmt":"2026-06-09T22:27:40","guid":{"rendered":"https:\/\/www.fintechpulse8.com\/?p=6496"},"modified":"2026-06-09T22:27:40","modified_gmt":"2026-06-09T22:27:40","slug":"wall-street-dumped-nearly-1-trillion-in-tech-stocks-by-midday-then-bought-peanut-butter-and-paint","status":"publish","type":"post","link":"https:\/\/www.fintechpulse8.com\/?p=6496","title":{"rendered":"Wall Street dumped nearly $1 trillion in tech stocks by midday\u2014then bought peanut butter and paint"},"content":{"rendered":"

<\/p>\n

Today, the Nasdaq Composite looked like a V: down more than 4% by lunchtime, closing off just 1%.\u00a0<\/p>\n

\n

Nobody knows exactly why.<\/p>\n

Around noon, the AI jitters came back, and traders dumped the highest-beta names\u2014the frothiest, most volatile stuff, like Strategy (MSTR), the leveraged bitcoin vehicle that had popped Monday; AppLovin (APP); the photonics maker Lumentum (LITE).\u00a0<\/p>\n

But the densest cluster was the chipmakers: Marvell, which dropped 10% a day after jumping 10% on news it\u2019s joining the S&P 500, and the rest of what strategist Ben Emons has dubbed the \u201cParabolic 7,\u201d after a chip index that ran up nearly 100% in a matter of weeks.\u00a0<\/p>\n

Rather than fleeing equities altogether\u2014treasuries barely moved\u2014the market rotated into peanut butter and paint. Smucker jumped double digits; Home Depot and Sherwin-Williams led. Real estate, staples, and utilities finished up: the classic ballast against tech froth.<\/p>\n

\u201cYou\u2019re seeing money flow into consumer names that have been unwanted and unloved,\u201d Richard Steinberg, senior global market strategist at Focus Partners Wealth, told the WSJ<\/em>.<\/p>\n

The trigger wasn\u2019t clear, but there are real reasons to want out of chips and diversified away from the AI trade. Wall Street has to make room for SpaceX, set to be the largest IPO ever on Friday, with OpenAI and Anthropic\u2014both now confidentially filed\u2014close behind. Annex Wealth\u2019s Brian Jacobsen called the tech run an Icarus trade with the wings melting: Alphabet\u2019s rare capital raise was the first warning, SpaceX the \u201cshiny new toys\u201d pulling money out. Though even that story has a wrinkle: SpaceX is already oversubscribed, with multiple $10 billion orders in.<\/p>\n

Also this week, inflation data lands Wednesday and Thursday, and a strong May jobs report last week has already pushed expectations for rate cuts further out. Funds tend not to sit in their most crowded, highest-beta positions going into an inflation reading that could move the Fed\u2019s path, which could be why some froth got cut off now.\u00a0<\/p>\n

The selling may also be less about selling than an absence of buyers. Founder ETFs\u2019 Michael Monaghan described it as buyers stepping back rather than a rush for the exits, dropping the price faster than the volume would suggest.\u00a0<\/p>\n

Oil went the other way. Even after President Donald Trump said the U.S. would have to respond to Iran\u2019s downing of a U.S. Army Apache helicopter near the Strait of Hormuz, crude fell about 3% to roughly $88, as the energy secretary said traffic through the Strait was picking up meaningfully.\u00a0<\/p>\n

Certainly investors are now wondering if this is the start of a longer \u201cpop\u201d or just a one-time correction. For them, the best information will come as SpaceX debuts, and public capital gets to decide if they believe in the AI story or not.<\/p>\n<\/div>\n

#Wall #Street #dumped #trillion #tech #stocks #middaythen #bought #peanut #butter #paint<\/p>\n","protected":false},"excerpt":{"rendered":"

Today, the Nasdaq Composite looked like a V: down more than 4% by lunchtime, closing off just 1%.\u00a0 Nobody knows exactly why. Around noon, the AI jitters came back, and… <\/p>\n","protected":false},"author":1,"featured_media":6497,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[536,101,8930,8614,176,92,2400,430,166,8928,615,8931,8929,4399,221,379,602,771,1152,3229],"class_list":["post-6496","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","tag-anthropic","tag-bought","tag-butter","tag-dumped","tag-inflation","tag-investors","tag-ipos","tag-jobs","tag-markets","tag-middaythen","tag-nasdaq","tag-paint","tag-peanut","tag-sp-500","tag-stocks","tag-street","tag-tech","tag-trillion","tag-wall","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/6496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6496"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/6496\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/6497"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}