Tech Rotation Knocks Nasdaq as Broader Market Holds Up

Stocks finished mixed Tuesday as investors rotated out of high-flying technology and semiconductor shares and into broader areas of the market tied to improving growth prospects. The Nasdaq and S&P 500 closed lower, while the Dow edged higher late in the session, underscoring that the weakness was concentrated rather than fully risk-off. Treasury yields slipped, oil pared a sharp decline after renewed US-Iran tensions, and investors turned their focus to Wednesday’s May CPI report.

Key Headlines & Market Movers:

• Tech Leadership Falters as Rotation Broadens: Chipmakers gave back recent gains after a powerful AI-driven run, with Marvell reversing sharply lower and broader semiconductor names under pressure. The move raised fresh questions about whether valuations in the market’s biggest winners can keep expanding after such a strong advance. Even so, most S&P 500 constituents rose, suggesting the broader market tone was more rotational than outright bearish.
• Geopolitics Keep Oil Volatile: Crude prices were lower after President Trump suggested a US-Iran deal could be reached soon, but losses narrowed after he said Iran had attacked a US helicopter near the Strait of Hormuz and that the US would respond. The shift reinforced how quickly energy markets can reprice geopolitical risk. A renewed escalation in the region would likely complicate the benign-growth narrative supporting equities.

IPO Supply and Corporate News Add to Market Crosscurrents: SpaceX’s expected IPO drew strong institutional demand, but its size also raised concerns that investors may need to trim existing winners to fund participation. In corporate news, Bank of America pointed to stronger-than-expected trading momentum, GSK agreed to buy Nuvalent for $10.6 billion, and Vail Resorts cut guidance due to difficult weather conditions. Apple remained under pressure after its developer conference, adding to weakness across mega-cap tech.

S&P 500 Sector Performance

Looking Ahead

The key test now is Wednesday’s May CPI report, with investors watching whether inflation is firm enough to keep pressure on rates and challenge the equity rally’s broadening momentum. A hotter reading could extend volatility in growth stocks and keep Treasury yields elevated, while a softer print would help support the rotation into cyclicals and other non-tech areas. Markets also remain sensitive to developments in the Persian Gulf, oil prices, and the size and reception of upcoming AI-related equity issuance.

Disclaimer

Duncan Williams Asset Management is an SEC registered investment adviser. SEC registration does not constitute an endorsement of Duncan Williams Asset Management by the SEC nor does it indicate that Duncan Williams Asset Management has attained a particular level of skill or ability.

This material prepared by Duncan Williams Asset Management is for informational purposes only and is accurate as of the date it was prepared.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Past performance is not indicative of future results. Investing involves risks, including the risk of loss of principal. Before making any investment decision, investors should consult with their financial advisor, consider their individual financial circumstances, and carefully review all relevant information and risk factors. Duncan Williams Asset Management assumes no responsibility for errors or omissions, nor does it accept liability for any loss arising from reliance on this information.

Advisory services are only offered to clients or prospective clients where Duncan Williams Asset Management and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Duncan Williams Asset Management unless a client service agreement is in place.

This material is not intended to serve as personalized tax, legal and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Duncan Williams Asset Management is not a legal or accounting firm. Please consult with your legal or tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.

‍