Tech momentum fades as booming jobs data cools AI bets

Tech stocks pulled back as momentum leaders reversed recent gains after a strong May jobs report, with Broadcom’s results failing to justify further AI-driven bets and several AI-linked names sliding. Higher yields and altered rate-cut expectations pressured risk assets, sending the S&P 500 down about 1% and the Nasdaq over 2%. The broad rally paused as investors reassessed valuations, while Lululemon fell after cutting its full-year outlook, signaling continued mixed signals for sector-specific names amid the macro backdrop.