U.S. stocks extend midday sell-off as chipmakers, crypto names and recent listings slide

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U.S. stocks midday sell-off

Highlights

Consumer staples and healthcare sectors outperform with gains of 2% and 1.7% respectively, as investors rotate away from riskier technology shares.
Lululemon Athletica plunges 9% after cutting full-year earnings and revenue guidance, while Docusign falls 6% following a weak Q2 revenue forecast.
Chipmakers and crypto-linked stocks slump—Broadcom drops 6%, AMD, Intel, and Qualcomm fall about 8%, Coinbase and Robinhood lose 8% and 7%—as bitcoin slips below $60,000.

Sector rotation drives the session's biggest moves

As reported by CNBC, consumer staples and healthcare are standing out as relative winners in Friday's broader sell-off while investors rotate away from higher-risk technology shares.

Consumer staples are last up 2%, helped by gains of more than 3% for Colgate-Palmolive, Coca-Cola and Procter & Gamble. Healthcare rises 1.7%, with Insulet up nearly 5% and Eli Lilly gaining almost 3%.

Elsewhere, Quantinuum shares fall more than 8%, pushing the stock below its $60 IPO price a day after its Nasdaq debut closes flat. FedEx Freight Holding Company jumps more than 8% as the recent FedEx spin-off heads for a weekly gain of about 6% after beginning trading on the New York Stock Exchange on June 1.

Earnings, guidance and bitcoin weakness pressure growth stocks

Lululemon Athletica drops 9% after cutting its full-year earnings and revenue guidance, while its current-quarter outlook also comes in below analyst expectations cited by LSEG. Docusign loses 6% after forecasting second-quarter revenue of $865 million to $869 million, a range that only brackets the LSEG consensus estimate of $866 million.

Chip stocks remain under pressure following Broadcom's earnings report earlier this week. Broadcom is down 6% after falling more than 12% the previous day, while Advanced Micro Devices, Intel and Qualcomm each lose about 8%, Arm slides 10% and Nvidia sheds more than 4%. The weakness extends to memory names, with Micron Technology down about 8%, Lam Research off 6%, Seagate Technology lower by just under 5% and Sandisk down close to 8%.

Among other notable movers, Cooper Companies gains around 8% after posting quarterly adjusted earnings and revenue above FactSet consensus estimates, and Argan rises 6% after first-quarter results beat expectations. ServiceTitan adds about 5% after raising its full-year adjusted operating income outlook, while Guidewire Software tumbles around 10% despite beating on revenue and earnings because its adjusted gross margin misses StreetAccount expectations. Chipotle Mexican Grill climbs close to 5% after JPMorgan upgrades the stock to overweight from equal weight.

Crypto-linked stocks also move lower as bitcoin falls 4% and briefly slips below $60,000, its lowest level since October 2024. Strategy drops more than 8%, while Coinbase and Robinhood fall 8% and 7%, respectively.

Our previous analysis of Broadcom’s post-earnings slide explained how the stock fell despite record quarterly revenue and strong free cash flow, as investors focused on conservative AI revenue guidance and missed near-term targets. We also highlighted the technical setup—trading below key short-term averages with support near the 50-day moving average—suggesting elevated volatility and a risk of further downside unless new catalysts emerge.

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