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StocksMedium•5 June 2026•

1 min read

Semiconductor Stocks Slump Led by Nvidia and Broadcom as Rate Cut Hopes Dim

Key Facts

1Markets recorded their worst daily performance since October 2026, led by a sharp decline in tech stocks.

2Broadcom shares dropped 7.9%, Nvidia fell 6.2%, and Micron Technology led losses with a 13.3% slide.

Following weeks of anticipation, Broadcom's latest outlook triggered a wave of caution regarding the sustainability of the AI boom. Markets recorded their worst daily performance since October 2026, led by a sharp decline in tech stocks as hopes for imminent interest rate cuts began to fade. Broadcom shares dropped 7.9%, Nvidia fell 6.2%, and Micron Technology led the downward move with a 13.3% slide.

This retreat comes as the semiconductor sector faces mounting pressure, with market data showing peers like AMD and Intel also experiencing parallel declines amid a broader re-evaluation of sector valuations. Per market data, this slump marks a sharp reversal from the robust gains seen in the previous quarter; analysts have noted that high valuation multiples left the sector vulnerable to profit-taking on any signs of growth deceleration or persistent hawkish monetary policy.

Traders are now monitoring key support levels as NVDA closed at lower levels on June 5, 2026. Looking ahead at the economic calendar, investors are focused on Fed Chair Powell's speech scheduled for May 31, 2026, followed by the ISM Manufacturing PMI data on June 1, 2026, which will be pivotal in shaping interest rate expectations and their impact on high-valuation growth stocks.