What happens to my tech stocks in the selloff?
After the spring correction, indices climbed to records by early June (S&P 500 above 7,600 for the first time) — then sentiment flipped: the June 6 jobs shock triggered the worst chip selloff since 2020, and the hottest US inflation print in three years buried rate-cut hopes. Here's the analysis — what's routine correction, what's structural break, and which steps make sense now.
Key facts
- June 6: the US jobs report (172,000 new jobs vs 80,000 expected) killed rate-cut hopes — “good news is bad news”: S&P 500 −2.64%, Nasdaq −4.18% in a single day.
- The chip sector lost about $1.3 trillion in market value — the worst day for the SOX semiconductor index since March 2020.
- June 11: US inflation at 4.2% (hottest print in three years) — the Dow lost 953 points and the 10-year US yield trades around 4.5%. High rates hit richly valued tech stocks hardest.
- Even strong numbers get punished: Oracle fell 8.5% on June 12 despite a record backlog (RPO $638bn) — expectations for AI names are priced extremely high.
- At the same time, enormous divergence: Intel is up +176% year-to-date on foundry wins (Google, Nvidia evaluation) — the AI infrastructure trend is intact but has become selective.
- Historically, Nasdaq corrections >15% are followed by a rally within 6–9 months in 75% of cases.
Potential winners
Defensive stocks that stay relatively stable during tech corrections:
Stocks under pressure
Tech stocks with the biggest drawdown — opportunity or falling knife?
What you should do now
Keep your savings plan running
If you have an MSCI World, Nasdaq-100 or S&P 500 savings plan: just keep it running. Cost-averaging works exactly in phases like this. Pausing now removes the biggest advantage of savings plans.
Look at valuations, not prices
Nvidia at P/E 28 is much more attractive than P/E 65 three months ago. Look at forward P/E and PEG ratio, not just the absolute price. A stock can be down 30% and still expensive.
No all-in, but tranches
If Nvidia/Tesla are on your buy list: 3–5 tranches over 6–10 weeks. Nobody catches the absolute bottom. Trade Republic, Scalable and Flatex allow buys from €1 — perfect for tranche strategy.
Tax-loss harvesting
In Austria, realised losses offset stock gains (KESt offsetting). If you want to sell a small loss position out of conviction, do it before year-end — the loss reduces your tax.
Recommended brokers — low-fee, no order commissions
If you want to act on these recommendations, you need a broker with low fees, fractional shares and free savings plans. These three are our top picks:
- 1€ per Trade
- Free Savings Plans
- 3.25% Interest on Cash
- Easy-to-Use App
- Flat-Rate Model for Active Traders
- Xetra Access
- Free Savings Plans
- Prime+ with Interest on Cash
- 150+ Exchanges
- Professional Tools
- Lowest Fees for Active Traders
- High Interest on Cash
FAQ — Common questions in this crisis
Should I buy more Nvidia now?
At -25% from the high and forward P/E ~28: if you hold Nvidia long-term and are underweight (<5%), tranche buying makes sense. If full position: do nothing. Warning: AI capex could slow further — no all-in position.
Should I sell my MSCI World ETF now?
No, never during a correction. The MSCI World is broadly diversified (1,500 stocks) and has recovered EVERY correction within 12–24 months over the last 50 years. Selling is the most common beginner trap.
What's the difference between a correction and a crash?
Correction: -10 to -20% from high, duration 1–6 months, normal market move. Crash: -20% or more, often paired with fundamental break (banking crisis, pandemic). Right now: clear correction, no crash. Even at -20% Nasdaq, top-10 fundamentals are stable.
Are tech ETFs a good idea now?
A savings plan on a Nasdaq-100 ETF (e.g. iShares Nasdaq-100 UCITS, ISIN IE00B53SZB19) makes sense in any correction — you buy cheaper. Lump sum: better staggered over 3–6 months.
Which defensive stocks make sense?
Classic defensives: Procter & Gamble, Johnson & Johnson, Coca-Cola, Nestlé, Walmart. All with 2–4% dividends, low beta (<1), stable business models. A 20–30% satellite to cushion tech volatility.