What happened: Micron (MU) reversed gains on Tuesday, sinking into negative territory. Memory and storage maker Sandisk (SNDK) also declined after initially opening in green territory along with custom chipmaker Marvell Technology (MRVL).
What’s behind the move: The declines on Tuesday came ahead of Wednesday’s Consumer Price Index (CPI) report, giving investors clues over how policymakers may react at its next meeting in June.
Investors were pricing in the likelihood of a 2026 rate hike instead of cuts in order to combat accelerating inflation and a hot job market.
What else you need to know: Semiconductor stocks have been at the center of the artificial intelligence trade this year, pushing the broader markets to all-time highs.
Memory chip manufacturer Micron has been a leader within the complex, topping $1 trillion market cap last month. Its peers, Samsung Electronics (005930.KS) and SK Hynix (000660.KS), which also rallied on Tuesday, crossed the $1 trillion threshold last month.
Meanwhile, Marvell Technology (MRVL) is set to join the S&P 500 (^GSPC) index as of June 22. News of its inclusion sent shares soaring on Monday, with gains reversing on Tuesday.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.