US Stock Risks Are Not Cleared. Nasdaq Weakens at Open, Four Major Investment Banks Reach Latest Consensus Warning of High Stock Market Risks

Tradingkey - On June 9, during early U.S. trading, the three major indices weakened across the board, with the Nasdaq Composite and S&P 500 turning from gains to losses, while the Dow Jones Industrial Average saw slight support. As of press time, the Nasdaq Composite fell 0.79% to 25,724.55; the S&P 500 fell 0.32% to 7,382.36; and the Dow Jones Industrial Average edged up 0.08% to 50,828.49.

Among mega-cap tech stocks, Apple (AAPL) fell 2.80%, Broadcom (AVGO) dropped 2.12%, Tesla (TSLA) declined 1.92%, Intel (INTC) lost 1.65%, Nvidia (NVDA) slid 1.33%, Microsoft (MSFT) fell 1.24%, and Netflix (NFLX) eased 0.42%; Meta Platforms (META) rose 1.38%, Alphabet (GOOGL) gained 0.22%, and Amazon (AMZN) edged up 0.02%.

At the sector level, chip stocks, computer hardware, and AI application stocks led the declines, while gambling and airline stocks bucked the trend to trade higher.

The Philadelphia Semiconductor Index fell more than 2%. Among its 30 constituents, 22 declined and 8 rose. Marvell Technology (MRVL) slumped 7.58%, Qualcomm (QCOM) dropped 6.25%, Arm Holdings (ARM) fell 6.17%, GlobalFoundries (GFS) declined 2.66%, ON Semiconductor (ON) lost 2.39%, and Advanced Micro Devices (AMD) shed 2.24%.

Gambling stocks defied the broader market trend. As of press time, DraftKings (DKNG) surged 8.90%, Flutter Entertainment (FLUT) rose 6.37%, Super Group (SGHC) gained 5.71%, Churchill Downs (CHDN) climbed 3.41%, Accel Entertainment (ACEL) added 3.31%, and Brightstar Lottery (BRSL) rose 3.29%.

The 2026 FIFA World Cup will kick off on June 11 (this Thursday), co-hosted by the United States, Canada, and Mexico. This marks the first time in history the tournament will be hosted by three nations and the fourth time it will be held in North America. According to a report by sports data provider Sportradar, the 2026 FIFA World Cup is set to be a historic growth inflection point for the U.S. sports betting industry. The agency stated that the rapid popularization of soccer culture in the U.S., combined with the high traffic and strong real-time interaction inherent to the World Cup, will bring unprecedented user growth opportunities to major betting platforms.

Citi noted that market risks in U.S. stocks have not been fully cleared following the Nasdaq 100’s plunge of nearly 5% last Friday, its largest single-day drop in 14 months. Traders are actively building short positions against U.S. equities, while bullish bets on the tech sector remain elevated, leaving the market exposed to downside risk. The firm added that current global equity bubble levels are nearing peaks seen since the 2008 financial crisis, with overall risk climbing steadily; if risk signals continue to mount, the market could face a more severe adjustment.

Bank of America (BofA) also signaled that an increasing number of "bear market signs" suggest a market top is approaching, advising investors to take profits. Analysts at the bank stated that about 70% of bear market indicators have now been triggered, matching the historical average seen at market peaks. The S&P 500 is overvalued across 17 out of 20 valuation metrics, with 8 even exceeding levels seen during the dot-com bubble.

Risk indicators cited by BofA strategists include declining consumer confidence, cooling growth expectations, slowing M&A activity, rising credit stress, and weak demand reflected in the Federal Reserve's loan survey. Meanwhile, high P/E stocks significantly outperforming low-valuation stocks is also viewed as a clear sign of excessive market speculation.

Concurrently, the trading desks of Barclays and Goldman Sachs jointly warned of three major risks currently facing U.S. stocks: overcrowded positioning, narrow market breadth, and prolonged high interest rates. These factors could easily trigger a sudden and sharp pullback, with the impact of factor unwinding potentially far exceeding what index volatility suggests.

Goldman Sachs data shows that momentum trade long crowding has reached historical peaks, while short positions are severely lacking. Should the AI trade logic shift, Fed rate hike expectations rise, or inflation flare up again, the market will face a violent reversal. Furthermore, equity exposure in CTA and volatility-control strategies has risen to its highest level since February; if volatility persists, passive selling will further amplify downward pressure.