US Stocks Swing Sharply, End Mostly Lower as Investors Take Profits Ahead of SpaceX IPO
Summary
- U.S. stocks ended lower after sharp intraday swings, with weakness in technology shares and the semiconductor sector standing out.
- Market commentary suggests investors are selling existing holdings to raise cash ahead of the SpaceX IPO.
- The market is also warning that if SpaceX absorbs a large amount of capital, it could affect flows into technology shares and growth stocks, as well as near-term volatility.
Forecast Trend Report by Period
U.S. stocks swung sharply on June 9 and ended mostly lower. Market watchers say investors are selling existing holdings to raise cash ahead of SpaceX’s initial public offering.
The Wall Street Journal reported that major indexes opened higher but reversed course in the afternoon as selling intensified.
Stocks recovered some losses late in the session. Still, the Nasdaq closed down about 1%, while the S&P 500 fell 0.26%.
Weakness in technology shares was pronounced, with semiconductor stocks under particular pressure. The Philadelphia Semiconductor Index, or SOX, dropped 1.9%.
The Wall Street Journal said profit-taking has emerged in stocks that posted strong gains this year.
It added that investors appear to be selling current holdings to build cash for participation in the SpaceX IPO expected this week.
Markets are also watching whether a large SpaceX fundraising could temporarily affect flows into technology and growth stocks.
Separately, major Wall Street firms have recently warned about excessive concentration in technology shares and overheated positioning, raising the risk of greater short-term volatility.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
