Nasdaq and S&P500: Meta Leads as Chip Stocks Slide at Mid-Session

Chip Selling Could Not Break the Weekly Rally

The S&P 500 traded flat on Friday with a weekly gain of nearly 1% intact. The Nasdaq Composite is up more than 1% for the week even with semiconductor stocks dragging the tech sector lower Friday. The Dow lagged both indexes and is on pace to finish the week down less than 1%.

SK Hynix priced its Nasdaq debut and the chip names that ran hard this year sold off around the listing. That selling stayed in one sector. The rest of the market did not follow.

Daily S&P 500 Index (SPX) Technical Analysis

The S&P 500 Index is trading flat, but remains in a position to breakout above a recent swing top at 7551.31. If this move takes place with strong conviction, buyers could take a shot at June 15 main top at 7577.92. This is the last potential resistance before the all-time high at 7620.90.

Helping to provide the lift for the benchmark index is a short-term support zone at 7474.57 to 7429.38 and the 50-day moving average at 7432.49.

The current chart pattern of lower tops and higher bottoms creates compression. Traders don’t like compression and are more than willing to go with the move so we’re expecting a jump in volume if there is a late session rally. If volume doesn’t follow the upside breakout then the S&P could reverse quickly into the close.

Daily Nasdaq Composite Index (IXIC) Technical Analysis

The tech-heavy Nasdaq Composite Index is lower on Friday but still holding above the 50-day moving average at 26044.59. The headwinds are coming from the short-term retracement zone at 26085.30 to 26346.05. If buyers can clear this zone then they may make a run at the next swing top at 26788.62. This is the last potential resistance before the record top at 27190.21.

If the 50-day MA fails then look for a sell-off into the close. This is likely to lead to spillover selling pressure on Monday.

SK Hynix IPO Pulled Capital From U.S. Chips

South Korean memory chipmaker SK Hynix priced its American depositary receipts at $149 each on the Nasdaq after a rally driven by demand for artificial intelligence memory chips this year. The listing pulled money straight out of established U.S. names. Micron Technology dropped about 3% and Intel fell nearly 3%. Marvell Technology, Lam Research and Broadcom all traded lower. The iShares Semiconductor ETF lost about 1.2% and the VanEck Semiconductor ETF gave back 0.8%.

The selling looked like capital rotation around a big listing, not a reassessment of where AI spending is headed. The major technology companies are still building out artificial intelligence infrastructure at pace and the pullback came after a strong run in the group. A new listing absorbed some of the capital that was already sitting in the sector and the established names paid for it.

Meta Ran 6% on Custom AI Chip News

Meta Platforms climbed about 6% Friday after Bank of America reaffirmed its Buy rating and pointed to a Reuters report that Meta is developing a custom artificial intelligence chip to expand computing capacity over the next two years. Bank of America said the project could significantly lower Meta’s AI infrastructure costs and improve long-term profitability. Investors have also responded to Meta’s recent AI initiatives including the launch of its Muse Spark 1.1 model.

Friday’s gain pushed Meta’s weekly advance past 14%, the stock’s biggest weekly run since February 2024. In a tech sector losing ground to the SK Hynix listing, Meta was the one name going the other way.

Materials Led a Broad Advance That Skipped Tech

Materials posted the strongest gain at 1.3% on Friday, followed by consumer staples, utilities, industrials and communication services. Financials and consumer discretionary also moved higher and energy added modestly. Technology slipped 0.2% on the semiconductor pressure and healthcare declined. Real estate traded slightly lower.

Delta Air Lines beat second-quarter estimates but the stock slid more than 3% early Friday before trimming some losses. Wells Fargo said Delta’s unit revenue was solid and the airline reaffirmed its 2026 outlook, but investors took profits on the release anyway. A beat that gets sold tells you the bar is already priced in.

What to Watch

The weekly gains survived a flat Friday but the chip selling is the question going into next week. SK Hynix starts regular trading Monday and if the listing keeps pulling capital from memory names, the Nasdaq takes the hit first. Meta’s 14% weekly run proved the market is still willing to pay for AI infrastructure plays, but a move that fast invites profit-taking before it extends. Delta’s post-earnings drop on a clean beat is a reminder that good numbers alone are not protecting stocks when expectations are already high.

The S&P 500 is compressing and that pattern breaks one way or the other. The nearest swing top is the trigger on the upside and the all-time high is not far above it. The Nasdaq is holding its 50-day moving average but resistance overhead is capping the advance. If the 50-day gives way early next week, expect the selling to carry over into the following session.

More Information in our Economic Calendar.