US equity markets closed lower on Tuesday as renewed concerns over artificial intelligence valuations weighed heavily on investor sentiment.
The broad-based selloff dragged down major indices, with the technology sector bearing the brunt of the selling pressure.
The decline came despite positive developments in the semiconductor supply chain.
TSMC, the world’s largest chip foundry, issued robust forward-looking guidance that typically serves as a catalyst for tech stocks.
However, the market’s reaction suggests that investors are increasingly focused on the sustainability of current multiples for large-cap technology firms rather than near-term earnings strength.
This repricing reflects a shift in market dynamics.