US equity markets closed lower on Wednesday as investors continued to trim positions in semiconductor stocks, capping a volatile week for the technology sector.
The sell-off reflects a broader rotation out of high-flying tech names that have led the market higher in the first half of 2026, with traders taking profits after a sustained rally.
The Nasdaq Composite and S&P 500 both retreated, weighed down by losses in large-cap technology shares.
The decline marks a continuation of the pressure that emerged on Monday, when selling in tech overwhelmed broader market resilience.
By Tuesday, the liquidation wave had spread globally, with semiconductor manufacturers facing the steepest declines as selling pressure extended from US exchanges to Asian markets.
The move underscores the fragility of the current tech-led rally, which has been driven by optimism around artificial intelligence and chip demand.