Wall Street closed in the red on Thursday as a renewed selloff in the semiconductor sector dragged down major indices.

The Nasdaq Composite fell nearly 2% during the session, pressured by sharp declines in leading chipmakers.

Despite the heavy selling, the index managed a modest recovery in the final minutes of trading, limiting the day's losses slightly before the bell.

The downturn in the technology-heavy benchmark highlights the continued vulnerability of growth stocks to sector-specific rotation.

While broader market indices also faced headwinds, the semiconductor segment bore the brunt of the selling pressure.

Investors appear to be taking profits or reassessing valuations after a period of strong performance, with the tech giants that have driven much of the recent market rally now facing headwinds.