(Adds analyst comment, market details after close of trading)
* Chips resume selloff after short-lived bounce on Monday
* Consumer price data, SpaceX market debut on watch this
week
* Trump writes on social media that Iran shot down a US
Apache helicopter
* Indexes: Dow up 0.2%; S&P 500 down 0.3%; Nasdaq down 1%
By Caroline Valetkevitch and Twesha Dikshit
June 9 (Reuters) - The S&P 500 and Nasdaq indexes fell on
Tuesday as a rebound in technology shares faded and as President
Donald Trump said the U.S. must react to Iran's shooting down of
a U.S. helicopter.
Trump wrote in a social media post that Iran had shot down the
U.S. Apache helicopter that was patrolling the Strait of Hormuz
overnight, and vowed to respond, which added to doubts about
prospects for a truce in the Middle East war.
The Cboe Volatility Index hit its highest level since
April 7 during the session as stocks sold off.
Technology stocks resumed Friday's selloff following a
bounce on Monday. The S&P 500 tech index fell more
than 4% before paring losses. The Philadelphia SE Semiconductor
Index dropped as much as 8.6% after rising 3% in early
trading. The tech index ended down 1.8% and the semiconductor
index was 1.9% lower on the day.
"When the bounce ran its course this morning, the tape came
for sale more broadly. There's also a rotation going on ... so
part of it is more of a momentum unwind," said Michael O'Rourke,
chief market strategist at JonesTrading in Stamford,
Connecticut.
Trump's post also briefly "created another leg down,"
O'Rourke said.
Iran and Israel on Monday said they would stop attacking
each other, boosting hopes that war tensions were easing.
The blue-chip Dow ended higher, while the Russell 1000 value
index gained 0.4%, outperforming the Russell 1000 growth
index, which fell 0.7%.
Investors may also be worried ahead of inflation data and a
highly anticipated SpaceX IPO later this week.
The Dow Jones Industrial Average rose 86.10 points,
or 0.17%, to 50,872.11, the S&P 500 lost 19.08 points, or
0.26%, to 7,386.65 and the Nasdaq Composite lost 250.84
points, or 0.97%, to 25,678.82.
Consumer price data for May could offer fresh clues on how the
rise in energy prices, driven by the Iran war, is impacting
inflation. The data is due on Wednesday.
A stronger-than-expected jobs report on Friday increased
bets that the Federal Reserve will hike interest rates this
year.
SpaceX's market debut on Friday could also be a hurdle for U.S.
stocks as investors worry about possible overexuberance among
high-growth technology stocks. Elon Musk's SpaceX is aiming to
raise $75 billion and targeting a valuation of $1.75 trillion,
the most ever for an IPO.
"This IPO is massive," said Jed Ellerbroek, portfolio
manager at Argent Capital Management. "Every investment
management firm in the country is talking about and considering
SpaceX. Even if they've decided not to buy it, they're reading
the news, they're seeing the new contract announcements ... Elon
Musk talk is everywhere. You can't avoid it."
"We all know Friday's trading day is going to be crazy.
There's going to be big volatility," he added.
Technology and AI-linked stocks sold off sharply on Friday
after Broadcom's ( AVGO ) disappointing forecast fueled concerns
about high valuations in the sector, particularly in chipmakers,
which have rallied sharply this year. The semiconductor index
remains up 78.7% for the year so far.
Shares of Broadcom ( AVGO ) were down 1.1% on Tuesday, while Nvidia ( NVDA )
was down just 0.2%.
Shares of Ciena fell 5.9% after the company announced
pricing on a convertible debt offering.
Advancing issues outnumbered decliners by a 1.33-to-1 ratio
on the New York Stock Exchange. There were 208 new highs and 190
new lows on the NYSE.
On the Nasdaq, 2,494 stocks rose and 2,378 fell as advancing
issues outnumbered decliners by a 1.05-to-1 ratio. The S&P 500
posted 31 new 52-week highs and 8 new lows while the Nasdaq
Composite recorded 151 new highs and 181 new lows.
Volume on U.S. exchanges was 24.77 billion shares, compared
with the roughly 20 billion average for the full session over
the last 20 trading days.