The AEX index retreated from earlier gains as a broad-based selloff in chip funds weighed on European equities, while the Dow Jones Industrial Average fell below 53,000 points in US trading.
The decline marks a sharp reversal from the tech-led rally that had previously lifted major indices to record highs, signaling that investor appetite for high-multiple growth stocks is cooling rapidly.
Selling pressure in the semiconductor and artificial intelligence sectors has intensified as investors reduce exposure ahead of critical US macroeconomic data releases.
The move reflects a broader risk-off sentiment that is undoing the momentum seen in recent weeks, where tech strength had been the primary driver for both the AEX and US benchmarks.
This session’s weakness aligns with a client note from Goldman Sachs indicating that US hedge funds have sold semiconductor and tech hardware stocks for a fourth consecutive week.
The persistent outflows suggest that institutional investors are rotating away from the AI trade, likely due to valuation concerns or a desire to de-risk before upcoming economic prints that could influence Federal Reserve policy expectations.