6/4 US Stock Market-Tech Stocks Shaken by Broadcom Shock; Finance and Healthcare Sustained Indices
June 04, 2026 Market Analysis
## 1. Today's Market Summary in One Line
"AI Superstar Broadcom stumbled, and finance and healthcare filled the gap."
On Thursday, June 4th, the U.S. stock market saw tech and semiconductor stocks plunge while cyclical and defensive stocks surged.
- On a sector basis, 8 out of 11 sectors rose, and overall market sentiment was 'positive',
- Finance (+2.76%), Healthcare (+2.49%), and REITs (+2.23%) led the market.
- Conversely, the Technology sector declined -0.52%, putting the brakes on the recent AI rally.
- On a single-stock basis, Broadcom's (AVGO) plunge of over -12% was the key event dragging down the entire tech and semiconductor sectors.(investing.com)
For investors, it was a day that made them wonder whether this was a healthy correction coming out of the overheated AI theme, or a peak-out signal.
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## 2. Key Issues Moving Today's Market
### 2-1. Broadcom: "Earnings Were Good, but Expectations Were Higher"
At the center of today's tech stock weakness was Broadcom (AVGO).
- Broadcom reported 'record earnings' in the second quarter announced the previous day, with both revenue and EPS growing significantly year-over-year.
- AI semiconductor revenue was still explosive at 10.8 billion dollars, up 143%, and the company also provided guidance for Q3 revenue with expectations of over 80% year-over-year growth.(htx.com)
- Despite this, AI semiconductor revenue guidance came in about 7% below Wall Street consensus, and the 'bigger upside' the market expected did not materialize.(htx.com)
As a result:
- It became an opportunity for investors to adjust their overly advanced expectations regarding the 'AI supercycle',
- Broadcom's stock plunged by around -14% early in the session, a shock level where market capitalization of 270-300 billion dollars evaporated in a single day.(investing.com)
Key Points:
- It is important to note that this was "an adjustment due to overly high expectations, not poor earnings."
- This is a typical case where, with the stock having already risen significantly over the past year on the AI theme, the market—expecting perfection or better—interpreted 'very good earnings' as a disappointment instead.
For some time, this could be a trigger for the debate "Growth is correct, but isn't the price too expensive?" regarding AI semiconductors overall to grow again.
### 2-2. 'Broadcom Shock' Spread Across the Semiconductor Industry
Broadcom's plunge spread throughout related semiconductor stocks.
- Micron (MU): As a representative stock for memory and HBM (high bandwidth memory) expectations that had risen significantly, it recorded a decline of -7-9% today, with short-term profit-taking concentrated.(invezz.com)
- Marvell Technology (MRVL): A high-expectation stock for AI data center networking and acceleration chips, declined more than -6%.(invezz.com)
Today's 24-hour return for the Technology sector was -0.52%, the only negative driver pulling down the entire index, and looking at the 7-day performance:
- After 3 consecutive trading days of strong rallies from May 29 +3.12%, June 1 +3.57%, to June 2 +0.46%,
- June 3rd -1.28%, today -0.52% for two consecutive days of breathing.
Looking longer, the technology sector is still in its strongest uptrend, having risen +37% since mid-March. However, it has entered a gentle adjustment phase of -1.6% since June 2nd, and today's adjustment can be interpreted as an extension of that.
Meaning for investors
- For investors looking to newly enter AI semiconductor stocks, a day like today could be a "chance to reset expectations and enter".
- For investors who already hold a significant portion, it is time to consider partial profit realization or diversification, taking into account the increased short-term volatility and adjustment risk.
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## 3. Finance·Healthcare·REITs: Quietly Growing Protagonists
The most notable sectors in today's market were finance, healthcare, and REITs (real estate).
### 3-1. Finance Sector: Interest Rates·Profitability Expectations Revived
- The finance sector surged +2.76% today, ranking first among the 11 sectors.
- Looking at the trends of representative stocks:
- Blackstone (BX): +7.8%
- Robinhood (HOOD): +6.6%
- Ares Management (ARES): +6.0%
Asset managers such as Blackstone and Ares, which are strong in alternative investments, private equity, and private debt,
- See increased demand for private debt on corporations, real estate, and infrastructure in an environment of interest rate fixation or long-term high interest rates,
- Benefit as general investors and pension funds turn their attention to alternative assets beyond stocks and bonds. (blackstone.com)
Retail brokers like Robinhood
- Directly benefit from increased individual trading volume in high volatility market conditions such as the surge in AI and semiconductors.
Important Context
- The finance sector has recovered to the 7% range after an initial adjustment (-3% or so) over the past 60 trading days, and has been on a gradual upward trend since May 11th, making a strong bullish candle today.
- Looking at the 7-day return pattern, it shows a strong confirmation of an upward direction after repeating slight fluctuations since May 29th.
Investor Perspective
- Diversifying a portfolio that is overly concentrated in technology and AI into finance and alternative investment stocks is gaining persuasive power.
- Financial stocks with clear cash flow based on dividends and fees can act as a "buffer" for portfolios in volatile market conditions.
### 3-2. Healthcare: Defensive Stocks and Structural Growth Stocks Regaining Attention
The healthcare sector rose +2.49% today.
- Representative stocks:
- Humana (HUM): +6.8%
- Moderna (MRNA): +5.9%
- Centene (CNC): +5.9%
Specific news is still limited, but the following trends seem to be at play.
1. Insurance·Managed Care (MCO) companies (HUM, CNC, etc.)
- Expectations for improved profitability due to population aging and the possibility of premium increases,
- The possibility of cost management improvement,
- Valuation becoming attractive again after recent adjustments, leading to a possible influx of bargain hunting.
2. Biotech (MRNA, etc.)
- The long-term story of expanding mRNA technology accumulated after infectious diseases to cancer and rare diseases is maintained,
- In a slowing economy, it is regaining attention as a growth sector less sensitive to economic conditions.
Looking at the 60-day trend of the healthcare sector,
- After a period of no significant direction, it has been moving within a box range since mid-March.
- Over the past two days (June 3rd and 4th), it recovered about +3.7% and broke through the upper end.
Implications for Investors
- Healthcare is a rare sector with both defensive and growth characteristics.
- In a high-beta (high volatility) portfolio centered on AI and semiconductors, this appears to be a window where increasing the healthcare allocation to lower volatility is an effective strategy.
### 3-3. REITs (Real Estate): Interest Rates and Communication Towers Strike Back
Today, the REITs (real estate) sector was strong at +2.23%.
- Representative stocks:
- American Tower (AMT): +6.4%
- Crown Castle (CCI): +5.8%
- SBA Communications (SBAC): +5.7%
All three of these stocks are communication tower and wireless infrastructure REITs, representing infrastructure essential to 5G, data usage growth, and cloud/AI data center expansion.
Today's movement can be read as two main signals.
1. Expectations for Relief from Interest Rate Burden
- REITs pay substantial dividends but often have high debt ratios, making them sensitive to interest rate levels.
- With growing expectations of interest rate peak-out, we're seeing rebound demand entering REITs that had been suppressed.
2. Expectations for Benefits from Data/AI Infrastructure
- AI data center and cloud expansion require more communication infrastructure.
- While tech stocks faced adjustment today, it can be interpreted that buying pressure flowed into the infrastructure side, viewed as an undervaluation correction period.
Over the past 60 days, the REITs sector has
- Initially fell to -5%,
- Recovered gradually between April and May,
- Maintained a modest upward trend in the +1% range from May 6th to the present.
Today's sharp rise is close to a 'reconfirmation' signal that reinforces this gradual recovery trend.
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## 4. Other Sectors: The Subtle Tug-of-War Between Cyclicals and Defensives
### 4-1. Industrials and Energy: Quiet but Solid Momentum
- Industrials: +1.06% today
- Reflected expectations for cyclical demand recovery, with AXON (tasers/body cameras) +6.6%, GE Aerospace (GE) +4.1%, ODFL (transportation) +4.0%, and others.
- Over the past 60 days, industrials have continued a gradual uptrend of around +2.8% since late March lows.
- Energy: +0.24% today
- With reduced volatility in oil and commodity prices, it's moving in a sideways range without significant falls or rises.
- From a 60-day perspective, after an initial spike and subsequent adjustment, it's currently sideways in the +4-5% range.
While these two sectors are not flashy in the short term,
- There is room for continued earnings improvement in case of a soft landing (or sustained growth),
- While simultaneously carrying structural themes such as fiscal spending, infrastructure investment, and defense demand,
These are sectors that can serve as the 'middle backbone' of a medium-to-long-term portfolio.
### 4-2. Consumer Sectors: Both Defensive and Cyclical in Wait-and-See Mode
- Consumer Discretionary: +0.38% today
- Cruises (NCLH), used car platforms (CVNA), delivery services (DASH) showed strength, but at the sector level, it's a sideways gain mixed with profit-taking and caution.
- The 60-day trend is a high-volatility sideways range with repeated ups and downs.
- Consumer Staples: -0.18% today
- While some stocks (CPB, STZ, KR) rose, the sector overall declined slightly.
- On a 60-day basis, it's showing a weak trend of around -4.5%, caught in an ambiguous period affected by changes in interest rates, inflation, and consumption patterns.
Key Points
- Consumer discretionary needs more economic confidence,
- Consumer staples appears to be undergoing valuation adjustment from "defensive stocks bought too expensively".
### 4-3. Utilities and Commodities: Passive Advantage
- Utilities: rose slightly by +0.51% today, but declined by -3.2% over the past 60 days.
- Basic materials: declined by -0.32% today, but the 60-day cumulative return is +5.3%, which is not bad.
Utilities still face interest rate pressures, while basic materials are in a tug-of-war depending on the pace of China's and global manufacturing recovery.
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## 5. Short-term vs Long-term: How to interpret today's signal?
### 5-1. Today's position in the 7-day trend
Summarizing daily sector returns over 7 days:
- Technology: after 3 consecutive days of 3%+ surges in late May to early June, followed by 2 consecutive days of correction, today's decline is primarily a breather from overheating.
- Financials, Healthcare, and REITs: after quietly declining or moving sideways for the past few days, a strong turnaround occurred today, emerging as a leading sector candidate.
- Energy and Industrials: maintaining a gentle positive trend, showing that confidence in economic momentum has not been significantly damaged.
### 5-2. The bigger picture from a 60-day trend perspective
From a 60-trading-day (approximately 3-month) perspective:
- Technology: up +37% since mid-March and leading the way, still showing the steepest upward trend despite the recent 2-day correction.
- Financials, Industrials, and Basic Materials: showing a stable upward trend in the +5-7% range after early corrections, reflecting a soft landing/expansion scenario.
- REITs and Healthcare: trading within a wide range and recently attempting to break through the upper level.
- Utilities and Consumer Staples: returns remain in the -3 to -5% range, caught in the ambiguous intersection of interest rates, inflation, and changing consumption patterns.
In summary:
> Today can be seen as a day when tech stocks were shaken short-term due to "AI expectation adjustments," but financials, healthcare, REITs, and industrials provided support, broadening the market's "legs."
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## 6. Four important points for me
1. AI semiconductors: the story is alive, but prices are adjusting
- Broadcom, Micron, and Marvell remain core to AI infrastructure.
- However, as expectations have gotten ahead of themselves, significant volatility could repeat with each earnings announcement.
- For new investors, dollar-cost averaging and a long-term perspective are key; for existing holders, position sizing and risk management are critical.
2. Financials, Healthcare, REITs: axis to reduce tech stock dependence
- Whether other sectors support the market when tech wavers, as today, is a measure of the health of a bull market.
- All three sectors have many stocks with cash flow-based fundamentals, dividends, and defensive characteristics, which help stabilize portfolios.
3. Industrials and Energy: quiet long-term base camps
- These sectors are connected to policy and structural themes such as infrastructure investment, defense spending, and energy security.
- They don't make daily news headlines, but can be a steady axis for long-term investors.
4. Reaffirming the importance of sector diversification
- Looking at just today, if you had gone all-in on one sector (technology), the felt volatility would have been very significant.
- Conversely, if you had diversified across multiple sectors, you could have buffered the tech correction with gains from other sectors.
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## 7. Simple checklist to prepare for tomorrow
Finally, here are some questions to consider before looking at the market tomorrow.
1. Is your weighting in AI-related stocks too large?
- Check whether your portfolio can withstand another event like the Broadcom shock.
2. Is your weighting in sectors with stable cash flows (financials, healthcare, REITs) sufficient?
- The greater the volatility, the more valuable companies with dividends and steady fee income become.
3. What is my investment horizon (time period)?
- Depending on whether you primarily focus on 3 months, 1 year, or 3 years, today's correction could be a threat or an opportunity.
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※ This report is intended for educational purposes only and aims to help you understand the broader trends in sectors and themes. It does not constitute investment advice, and actual investment decisions should be made carefully after considering your individual risk tolerance and financial situation.
This content is for informational purposes only and does not constitute investment advice for any specific security or asset.
Source: https://nextinvest.org/ko
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