Giants are being slaughtered, chips are partying — is this U.S. stock market 'fake dip' a chance to chase or a reason to run?

Conclusion first: Last night, the US stock market only dropped a little (S&P -0.37%), but there was intense internal divergence—several tech giants (Google once fell 6%, Amazon fell 4%) were heavily sold off, while the semiconductor sector (SMH up 3.67%) and small-cap stocks (Russell 2000 up 0.83%, hitting a new all-time high) surged. This indicates that capital isn't leaving the market, but "rotating": from the big companies pouring money into AI, to the chip companies supplying AI and the pro-cyclical small caps. What it means for you: This is not a crash, you can follow, but keep positions light, don't chase highs, and watch one key data point on Thursday.
Why were the giants sold? Because the market is starting to "do the math." These big companies are spending more and more on capital expenditures (capex, i.e., money for buying equipment and building data centers) for AI, but the payback is still far away. In the past, everyone just focused on the story; now they're starting to demand returns—so they sell the ones spending the most aggressively first.
Why are chips rising? Because the money spent by the giants is going straight into the pockets of chip and equipment companies. They are the "recipients" of the money, with visible orders and higher certainty. A landmark event: Marvell (a data center chip company) officially entered the S&P 500 index, which will bring over $7 billion in passive buying.
So, is it dangerous now? The key is Thursday (June 25th) when the US releases the core PCE (the Fed's most-watched inflation indicator). The new Fed Chair has already pivoted and may raise rates (probability of a rate hike this year is 83.1%). If inflation exceeds expectations, even the hottest chip stocks will fall—because their valuations aren't cheap either (Marvell's P/E is 71). Before that, this is just a normal "style rotation."
What should you do? First, you can participate in the chip and small-cap trend, but don't go all-in at the highs after two consecutive days of gains; keep some cash. Second, keep a close eye on the June 25th core PCE: if it cools, add a bit on the trend; if it exceeds expectations, step back first. Third, giants might rebound from short-term mis-selling, but don't treat them as a "safety cushion"—there's no Fed backstop behind this rally.
Tonight, it was a few giants that died, not the entire market trend; you can follow the direction, but positions must be light. We'll see on Thursday.

$VanEck Semiconductor ETF(SMH.US) $Alphabet(GOOGL.US)