US equity markets retreated on Tuesday, with the technology-heavy Nasdaq Composite falling 1.3% as selling pressure intensified in the semiconductor sector.
The broader S&P 500 also slipped, closing 0.3% lower, as investors reduced exposure to artificial intelligence and chip-related names.
Declining oil prices added to the risk-off mood, weighing on energy shares and contributing to the broad-based weakness across Wall Street.
Declining oil prices added to the risk-off mood, weighing on energy shares and contributing to the broad-based weakness across Wall Street.
The semiconductor slide marks a continuation of the broader technology sell-off that has plagued the sector in recent sessions.
Investors appear to be rotating out of high-multiple growth stocks, with chip makers bearing the brunt of the outflows.
The retreat in semiconductors is not isolated to US-listed names; volatility has also spiked in Asian markets, where leveraged ETFs have amplified swings in the Kospi, reflecting the global nature of the chip trade's current fragility.