NEW YORK, July 1, 2026 – Major U.S. equity index ETFs edged lower in late after-hours trading Wednesday, but the declines were modest compared to the semiconductor-led selloff that defined the regular session. The SPDR S&P 500 ETF Trust (SPY) slipped 0.12% to $744.85, the Invesco QQQ Trust (QQQ) fell 0.13% to $724.24, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) dropped 0.13% to $521.72 near 7:52 p.m. ET.
During the regular session, the S&P 500 declined 0.22% to 7,483.23, while the Nasdaq Composite lost 0.66% to 26,040.03. The Dow Jones Industrial Average was nearly flat, falling just 13.96 points to 52,305.24. The standout laggard was the Philadelphia Semiconductor Index, which tumbled 6.3%, driven by steep losses in chipmakers such as Micron Technology (MU) and Nvidia (NVDA).
After-Hours Activity: Mostly Quiet, Except for Micron
MarketWatch’s after-hours screen showed 19 of the 20 most active stocks trading within a tight 1% range. The lone exception was Micron, which moved more than 1% after hours, dropping an additional 1.09% to $1,021.01. Nvidia also slipped 0.17% to $197.25. The after-hours session, which runs from 4 p.m. to 8 p.m. ET, saw relatively subdued activity overall.
Among the most active names, AT&T (T) topped the list with 17.05 million shares traded, up 0.05%. PayPal Holdings (PYPL) edged up 0.09%, while Cisco Systems (CSCO) fell 0.23%. Comcast (CMCSA) was unchanged. The median absolute move among the top 20 was about 0.08%.
Chip Selloff Highlights Concentration Risk
The divergence between a sharp chip selloff and relatively positive breadth underscored a growing concentration issue in U.S. markets. According to Reuters, advancers led decliners 1.07-to-1 on the NYSE and 1.16-to-1 on Nasdaq, indicating that the selloff was not broad-based. Total U.S. exchange volume reached 19.71 billion shares, below the 20-session average of 23.36 billion.
“All measures of asymmetry and risk are flashing amber,” said Oliver Shale, investment specialist for the U.S. at Ruffer, in a note dated June 30. BofA Global Research’s Bubble Risk Indicator stood at 0.91 for semiconductors and 0.82 for technology. The S&P 500’s price-to-sales ratio of 3.22 remains well above the long-run average of 1.84, according to LSEG data.
Valuation and Spending Concerns
JJ Kinahan, head of retail expansion and alternative investment products at Cboe Global Markets, told Reuters that buyers of chips and AI gear “still have to prove” that their spending is justified. His comments followed a session where Micron sank 10.4% during regular hours, while Nvidia lost 1.25%.
Despite the tech weakness, the broader market found some support from macro data. The U.S. manufacturing PMI slipped to 53.3 in June from 54.0 in May but remained above the 50 threshold, indicating expansion. Private payrolls increased by 98,000 in June, down from 122,000 in May, while planned layoffs fell 53% to 45,849. “The manufacturing sector still seems to be in relatively good health,” said Oliver Allen, senior U.S. economist at Pantheon Macroeconomics.
Standout Movers: Nike, Meta, and Alcoa
Nike (NKE) climbed 5.1% after reporting quarterly results, though CEO Elliott Hill acknowledged that “the results aren’t there yet” and that Nike isn’t “living up to our full potential.” Meta Platforms (META) surged 8.8% following a Bloomberg report about a cloud venture. On the downside, Alcoa (AA) dropped 8.9% after Australia’s South32 said it would sell most of its aluminum business to the company.
Outlook: Payrolls and Holiday Weekend
Investors now turn to Thursday’s payrolls report. A Reuters poll estimates nonfarm payrolls rose by 110,000 in June, down from 172,000 in May, with the unemployment rate unchanged at 4.3%. Markets will also face a shortened trading week, as Nasdaq will be closed Friday, July 3, for the Independence Day holiday.
