Chip off the Old Block. All eyes were on tech today as the sector declined 3.7% and investors sold off chip stocks. Even some of the bigger artificial intelligence companies took a hit.

The Nasdaq Composite Index started the day down 1.9%, and kept falling, ending the day down 2.2%. It was index’s sixth daily move of 1% or more in a row, in either direction.

The S&P 500 closed down 1.4%. The Dow Jones Industrial Average dropped 45 points, or 0.1%.

South Korea’s KOSPI index—which my colleague Martin Baccardax notes is the de facto benchmark for Asian tech stocks and a precursor to trading in U.S. markets—suffered its biggest single-day slide since March. The index fell nearly 10%, with trading halted twice.

That sell-off in South Korea could further rattle U.S. tech stocks, as investors worry that the AI rally may be due for a “breather,” writes José Torres, senior economist at Interactive Brokers.

“The adverse development coincides with notable customers recently complaining that the technologies have become unreasonably expensive, raising slowdown anxiety tied to the potential for firms to increasingly limit capital expenditures,” Torres noted.

Still, today’s moves seemed to be more about the market structure and concentration rather than fundamentals—at least for now.

The Hot Stock: Axon Enterprise +5.6%
The Biggest Loser: Sandisk Corp. -13.6%

Best Sector: Consumer Staples +1.8%
Worst Sector: Information Technology -3.7%

It’s the end of June, which means the waiting game for the most important, and typically controversial, rulings from the Supreme Court is ramping up. The Court has about a dozen cases left on its docket to get through before recessing for the summer.

Many of the outstanding decisions are also the most high profile, including birthright citizenship, questions on the eligibly of trans athletes, and election laws. Today the court handed down five decisions, but none of the truly big ones. There’s more on tap for Thursday and the Court will likely extend its decision days into next week—if not the week after.

The decision that has the potential to make the biggest impact on markets hinges on whether the president has the authority to fire sitting federal officials, including central bankers.

The landmark case, Trump v. Cook, came about after President Donald Trump attempted to remove Lisa Cook from the Board of Governors of the Federal Reserve System in August amid allegations she made false claims on mortgage documents in 2021 that may have secured her more favorable loan terms.

Cook sued, arguing that the termination—which Trump announced via social media—violated her right to due process, and argued the government had not provided sufficient evidence to merit an appropriate “for cause” removal as required.

Cook’s full 14-year term on the board is set to end in January 2038. She was appointed in 2022 by then-President Joe Biden to fill an unexpired term. She was reappointed in 2023 to her current term.

Both a federal judge and a federal appeals court in Washington, D.C., upheld Cook’s tenure, but attorneys for Trump appealed the decision to the Supreme Court’s emergency docket last fall. The Court declined to issue an emergency ruling on Trump’s bid to sideline Cook, instead requiring both parties submit to oral arguments.

In January, justices appeared skeptical of the government’s arguments that a president has wide discretion to remove Fed officials.

“Your position that there’s no judicial review, no process required, no remedy available—very low bar for cause that the President alone determines—and that would weaken, if not shatter, the independence of the Federal Reserve that we just discussed,” Justice Brett Kavanaugh said to the solicitor general during the hearing.

If the Court should come out against Cook, it would put Fed independence in serious jeopardy. The’s Fed’s autonomy from political interference provides the public with confidence that officials’ actions are solely a response to economic conditions—and that upholding the dual mandate of maximum employment and price stability are the guide. Without that, expectations may become unmoored and attempting to address issues like high inflation would prove more complicated.

Micron Technology, Paychex, Trip.com, and Jefferies Financial release earnings tomorrow.

The Census Bureau reports new home sales for May. The consensus call is for a seasonally adjusted annual rate of 658,000 new single-family homes sold, up from 622,000 in April.

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