S&P 500 · U.S. · Semiconductor · Broadcom · Fortune Technology
Bank of America told investors to ‘take profits.’ Then the Nasdaq fell 7%
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Bank of America told investors to “take profits” on June 5, and many of them did.
Key facts
- The Nasdaq had fallen roughly 7% from its own June 1 peak; the Dow about 2.7%, or some 1,400 points
- The Philadelphia Semiconductor Index fell 10.3% on June 5–its worst day since 2020–after Broadcom’s cautious guidance and a memory glut handed the crowd a reason to sell
- Today the market pairs with a trailing p/e ratio of above 30 with inflation over 4%, and the total sits well above 20
- Plus, many analysts acknowledged traders were perhaps clearing up some space for Friday, when SpaceX prices the largest IPO in history—roughly $1.77 trillion—and starts trading the next morning
Summary
Savita Subramanian’s strategy team flagged seven of the firm’s 10 bear-market signposts—five already triggered by April, plus two more in May—and told clients to trim their winners. That note now makes Subramanian look like Nostradamus. Many of the funds that suffered the worst routs were the most leveraged. The Philadelphia Semiconductor Index fell 10.3% on June 5–its worst day since 2020–after Broadcom’s cautious guidance and a memory glut handed the crowd a reason to sell. More than $1 trillion in market value evaporated in a single session.