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Tech Selloff Deepens After Broadcom Margin Warning as Rotation Lifts Dow to Intraday Record

Margin anxiety following Broadcom’s report prompted a rotation into cyclical and defensive sectors.

Overview

  • The S&P 500 fell 1.1%, the Nasdaq lost 1.7% (398.69 points), and the Dow slipped 0.5% after early strength, according to closing data.
  • Broadcom beat on earnings and revenue but dropped about 11% after tighter margin commentary triggered a sell-the-news reaction.
  • Sympathy losses hit semiconductors and hardware, with Micron, Western Digital, AMD and Lam Research among notable decliners, while Oracle extended its slide on large AI data-centre spending plans.
  • The 10-year Treasury yield rose to roughly 4.19%, pressuring high-valuation growth shares and reinforcing the shift toward value and defensives.
  • For the week, the Dow rose about 1%, while the S&P 500 fell 0.6% and the Nasdaq declined 1.6%, leaving major indexes still up solidly year to date.