A violent rotation out of semiconductors and AI-linked stocks is dominating Tuesday's tape, as a Korean chip stock rout overnight sent shockwaves through US markets. The S&P 500 and Nasdaq are both firmly in the red mid-session, while the Dow is hanging onto slim gains thanks to defensive and non-tech names. WTI crude is sinking toward $74 as US-Iran peace talks progress, unwinding the war risk premium that had propped up oil prices for months. For informational and educational purposes only. Not investment advice.
→ Micron (MU) reports fiscal Q3 earnings tomorrow (Wednesday) — tonight's after-hours print will be pivotal. The stock is already under heavy pre-earnings pressure; a miss or cautious guide could extend the semiconductor selloff into Wednesday's open.
→ S&P Global Flash PMIs for June drop today — the first major macro read of the week. A soft services or manufacturing print could compound the risk-off tone already gripping the market; a beat could provide a lifeline for bulls.
→ US-Iran peace talks remain a live wildcard: Iran's foreign ministry contradicted VP Vance on nuclear inspections Tuesday, and Iran's chief negotiator said the Strait of Hormuz will 'never return to its pre-war conditions.' Watch for any headline escalation — it could reverse the oil selloff quickly. This week also brings May PCE data (Thursday), the Fed's preferred inflation gauge, with markets now pricing a ~68% chance of a September rate hike.