Semiconductor stocks led a broad tech retreat overnight, with the Nasdaq (QQQ) down 1.25% and the triple-leveraged Nasdaq (TQQQ) sinking 3.76%. The semiconductor sector was especially brutal—SOXL plummeted 12.50%—as investors rotated profits following the chip rally's parabolic run. QUALCOMM (-12.1%), Intel (-8.4%), Micron (-5.8%), and Western Digital (-7.0%) all sold off sharply amid inflation concerns and competitive pressure, though bright spots emerged: Zebra Technologies (+11.1%) and Qnity Electronics (+8.1%) both beat earnings and raised guidance on AI/manufacturing demand. Healthcare outperformed with Humana (+7.5%), Centene (+5.4%), and STERIS (+5.4%) climbing on earnings beats and strategic moves.
Avoid** the broad semiconductor complex until the sector stabilizes—too much momentum-driven selling and downside risk ahead of potential macro headwinds. **Buy** selective beaten-down chip names like Intel only if you see a reversal pattern; the sector is not yet exhausted. **Rotate into** healthcare and industrials (Humana, Centene, Huntington Ingalls) where earnings quality is holding and valuations are tightening. Hold SPY/QQQ as defensive positions; the 0.28% SPY decline is manageable, but watch for deeper weakness if tech continues rolling over.