Semiconductor stocks tumbled on AI slowdown concerns while Brent Crude hit $108 per barrel, dragging the Nasdaq and S&P 500 down 0.4% in a volatile trading session.
Brent Crude hit a four-month high of $108 per barrel after Saudi Arabia shut its East-West pipeline due to a drone strike.
Nvidia dropped 2.8% and was the largest single drag on both the S&P 500 and Nasdaq Composite amid AI slowdown concerns.
Micron Technology fell 5.6% as semiconductor stocks sold off on AI spending fears.
SK Hynix dropped 7.4% alongside other memory chip stocks on AI hardware spending slowdown.
The Nasdaq Composite declined 0.4% amid pressure from semiconductor stocks.
The S&P 500 matched the Nasdaq decline, also weighed down by Nvidia.
Goldman Sachs erased 180 Dow points due to high bond yields and geopolitical turbulence.
Caterpillar fell sharply as a weather vane for AI data center construction spending, erasing 180 Dow points.
Microsoft rose 1.9% as investors rotated into software leaders on potential hardware spending slowdown.
Alphabet added 2% as software stocks rallied on perceived benefits from a slower hardware cycle.
The Dow slipped 0.1% as declines in Goldman Sachs and Caterpillar offset gains in software stocks.
Salesforce was among the Dow's leaders, benefiting from the rotation into software names.
Wall Street indexes retreated as semiconductor stocks faced a sell-off following industry calls to slow AI development. Nvidia, Micron, and SK Hynix led the decline, while investors rotated into software leaders like Microsoft and Alphabet. Meanwhile, Brent Crude surged to a four-month high of $108 per barrel after a drone strike on Saudi infrastructure, adding further pressure to the global economic outlook.
Semiconductor stocks are falling due to industry leaders, including Anthropic's CEO, calling for a slower pace in AI model development, which investors fear will reduce hardware and data center spending.
Brent Crude hit a four-month high of $108 per barrel after Saudi Arabia shut down its East-West pipeline following a drone strike, coupled with restricted access to alternative Red Sea shipping routes.