US close, 26 June 2026: S&P 500 flat as a semiconductor selloff meets a software rebound

S&P 500 close: 7,354.02 (-0.05%) Breadth: 7 of 11 S&P sectors higher Sentiment: mixed

The S&P 500 closed at 7,354.02 on Friday 26 June 2026, down 0.05%, as a rebound in the largest software stocks and a 3.03% gain in Health Care offset a semiconductor selloff. ON Semiconductor ON.US fell 23.66%, its steepest drop in 10 months, after agreeing to buy Synaptics in a $7 billion all-stock deal and drawing a TD Cowen downgrade to Hold. The chip decline was day five of a drawdown in the AI hardware trade: SK Hynix signalled a slowdown in its AI memory business and Broadcom's 23 June guidance miss had sent Korea's KOSPI into a circuit breaker.

At a glance

• S&P 500: 7,354.02 (-0.05%)
• Nasdaq: 25,297.62 (-0.24%)
• Dow: 51,876.11 (-0.09%)
• Russell 2000: 3,010.08 (+0.07%)
• VIX: 18.41 (-2.54%)
• US 10Y: 4.372% (down about 2 bps)

What moved the index

The S&P 500 finished 0.05% lower because two near-equal forces cancelled out: heavyweight software and Health Care gains against a deep chip selloff.

• The biggest index weights added the most points. MSFT.US +5.71%, AAPL.US +3.14% and AMZN.US +2.50% are three of the largest weights in the index. Microsoft entered Friday down about 25% in 2026 on memory-cost inflation, and gurufocus tied its move to a product price increase and fresh hedge-fund buying.
• Health Care gave the widest sector support. XLV +3.03% was the best of the 11 sectors, led by Moderna MRNA.US +12.59% after a Science Day pipeline update.
• Semiconductors pulled the index the other way. The SMH semiconductor ETF fell 3.97% and Technology XLK closed -1.87%, the worst sector. ON.US -23.66%, WDC.US -13.17%, STX.US -12.24%, TXN.US -8.46%, QCOM.US -7.57% and MU.US -6.69% led the decline, with NVDA.US -1.64% and AVGO.US -3.67% adding the heaviest weight to the drag.

The software and Health Care gains offset the chip drag almost exactly, leaving the S&P 500 down 0.05%. Breadth was positive, with 7 of 11 sectors higher, so the flat headline reflects the chip sector's heavy index weight rather than weak participation.

Session highlights

• S&P 500 recovered through the day: it opened at 7,312.74, fell to 7,294.18, then reached a 7,392.95 high before settling at 7,354.02.
• VIX 18.41, down 2.54% and off an intraday peak of 20.72, as the selling stayed inside semiconductors.
• Russell 2000 +0.07% and 7 green sectors confirm the decline was concentrated in chips, not market-wide.
• Nasdaq -0.24% lagged the Dow -0.09% on its heavier semiconductor weighting.

Sector scorecard

• Best: Health Care +3.03%
• Worst: Technology -1.87%, with Semiconductors (SMH) -3.97%
• Dispersion (best minus worst): 4.90 points
• 7 of 11 sectors higher; Real Estate +1.46% and Utilities +0.76% firmed as the 10-year yield eased about 2 bps to 4.372%.

Top movers

Notable announcements

• ON Semiconductor ON.US agreed to acquire Synaptics SYNA.US in an all-stock transaction valued near $7 billion, a push into "physical AI", with closing expected mid-2027. TD Cowen moved ON to Hold from Buy, flagging integration risk from the deal. Synaptics shares rose on the deal.
• DraftKings DKNG.US +11.26% launched DKeX, a proprietary prediction-markets exchange.
• Moderna MRNA.US +12.59% used a Science Day to detail pipeline milestones; one broker lifted its valuation to $77.

Where the chip selloff stands

• SK Hynix signalled it will slow its AI memory business, and Broadcom's 23 June guidance for Q3 AI-chip revenue near $16 billion undershot the roughly $17.2 billion the market expected, sending Korea's KOSPI down about 10% into a circuit breaker that day.
• Micron MU.US reported on 25 June with an upbeat memory outlook, but the relief did not hold; MU.US closed Friday at -6.69% as profit-taking returned across chip names.
• For the week, the Nasdaq headed for its worst weekly loss in more than a year on the AI-hardware unwind.

Next session catalysts (ET)

• Mon 29 Jun: first US session after the chip selloff; the SMH semiconductor ETF and the ON Semiconductor and Synaptics reaction are in focus.
• Tue 30 Jun: quarter-end and first-half close, with index-rebalancing flows likely.
• Wed 1 Jul: ISM Manufacturing PMI for June and ADP private payrolls, the first read on second-half factory activity and labor demand.
• Thu 2 Jul: June nonfarm payrolls, moved up ahead of the holiday; US markets close Friday 3 July for Independence Day.

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