US stock markets closed lower on Thursday, with the semiconductor sector leading the decline.

Shares of IQM and Nokia fell sharply on Wall Street, anchoring a broader retreat in technology names as investors reassessed the sustainability of artificial intelligence-related valuations.

The sell-off marks a continuation of pressure on high-growth tech equities.

Market participants are increasingly scrutinizing whether current capital expenditure levels in AI infrastructure are justified by near-term revenue potential.

This skepticism has fueled a rotation out of the sector, adding to losses seen earlier in the week.

The decline follows a volatile period for US equities.