Chip Stocks Plunge, Bargain-Hunters Limit Scale of Falls
The Philadelphia semiconductor index sank 7.9% as traders worried hyperscalers are funding artificial intelligence expansion with debt, market data showed.
- On Wednesday, the Nasdaq Composite and S&P 500 closed at more than one-week lows, dragged down by sharp losses in semiconductor stocks and investor anxiety over Federal Reserve hawkishness.
- Concerns over debt-funded AI spending triggered the selloff, with the Philadelphia SE Semiconductor index tumbling 7.9% and chipmakers Nvidia and Intel falling between 5.8% and 9.4%.
- Traders are betting on a second interest rate hike by December under new Chair Kevin Warsh, pricing in hawkish monetary policy as markets await Personal Consumption Expenditures Price Index data on Thursday.
- The CBOE Volatility Index climbed 2.23 points to 19.52, hitting an over-one-week high, while declining issues outnumbered advancers by a 1.31-to-1 ratio on the NYSE with 187 new lows.
- Investors are watching developments in the Middle East as the Senate backed legislation to halt military action against Iran, while President Donald Trump negotiates a peace agreement with Iran.
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24 Articles
New York Stock Market Falls Across the Board on Sharp Slump in Semiconductor Stocks; Nasdaq Down 2.22% The three major stock indices in the U.S. New York stock market all closed lower. This is attributed to dampened investor sentiment stemming from massive spending by artificial intelligence (AI) companies and caution regarding the possibility of further tightening by the Federal Reserve (Fed). (Local time, 23rd)
Wall Street falls as chip stocks slide on AI spending concerns | Honolulu Star-Advertiser
The Nasdaq and the S&P 500 closed at more than one-week lows today, dragged down by sharp losses in semiconductor stocks as investors scrutinized growing debt-funded AI spending and braced for a more hawkish U.S. Federal Reserve.
The sharp adjustment of positions in the technology sector, amid bets on higher interest rates in the United States and increasing spending on artificial intelligence, pressured US stock markets on Tuesday, especially the Nasdaq and S&P 500 indices, due to the greater presence of technology stocks in their compositions. The good performance of the health and finance sectors, on the other hand, alleviated losses on Wall Street. The Dow Jones ind…
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