Semiconductor shares faced renewed selling pressure on Thursday, dragging down the technology-heavy Nasdaq while the broader S&P 500 remained largely flat in afternoon trade.
The slide in chip stocks reflects growing investor caution regarding the sustainability of the artificial intelligence trade, with a key semiconductor index falling sharply as traders reassessed risk exposure.
The weakness in semiconductors was offset by strength in defensive sectors.
Health care stocks led gains across seven of the S&P 500’s 11 industry groups, joined by advances in real estate, consumer discretionary, and consumer staples.
This rotation underscores a shift in market sentiment, with investors moving capital away from high-growth tech names toward more stable, value-oriented sectors amid uncertainty over AI-related valuations.
The move comes after a volatile period for Wall Street, where technology stocks have seen sharp swings.