US equity markets closed lower on Friday, extending a weekly decline as selling pressure intensified across the semiconductor sector.
The broad-based pullback reflects a deepening rotation out of high-flying technology stocks, with investors increasingly questioning the sustainability of current artificial intelligence spending levels.
The selloff, which has persisted since Tuesday, marks a shift from isolated profit-taking to a more widespread reassessment of valuations in the chip industry.
Ryan Detrick, chief market strategist at Carson Group, noted that the market appears to be suffering from "chip fatigue," suggesting that the relentless rally in semiconductor names has reached a point of diminishing returns for many participants.
This development follows a sharp drop on Tuesday, where skepticism regarding AI capital expenditure drove a significant downturn in the Nasdaq.
The continued pressure indicates that the initial correction has evolved into a broader sector-wide repricing, rather than a temporary dip.