Semiconductor stocks tumbled on AI spending concerns, dragging the Nasdaq and S&P 500 lower, while software shares and energy prices surged amid geopolitical tensions.
CrowdStrike surged 14% as software stocks rallied.
Palo Alto Networks rose 13% in cybersecurity software rally.
Robllox surged 11% after analYsts raised targets following developers conferrence.
Marvell Technology dropped 7.5%% as chip stocks declined on AI spending rethink.
Roundhill Memory ETF fell 7% as chip sector weakness persisted.
Nvidia shares fell 3.5% amid AI safety warnings and broader chi selloff.
Intel fell 5.5% in the broader semiconductor selloff.
iShares Semiconductor ETF declined 5.5% amid AI spending rethink.
WTI crude rose 1.3% to $101.35 on Saudi pipeline closure and Middle East tensions.
Brent crude advanced 1.4% to $106.10, tracking WTI gains.
Oracle shares declined 3.5% despite CEO canceling share sale plan, amid tech selloff.
Salesforce rose 4.5% helping the Dow minimize declines.
iShares Expanded Tech-Software ETF rose 5% as software stocks jumped.
Gold futures declined 1.8% to $4,330 an ounce as dollar and yields strengthened.
Bitcoin traded around $79,100, up from overnight lows of $76,400, showing resilience.
Nasdaq Composite fell 0.6% on tech weakness.
S&P 500 down 0.5% as chip stocks dragged.
U.S. dollar index rose 0.4% to 99.47 amid rate hike expectations.
Dow Jones fell 0.3% but software gains limited losses.
Bank of America fell 6% after CEO warned Q3 investment banking fees down10%.
Major U.S. indexes closed lower on Monday as semiconductor stocks retreated following industry warnings to slow AI model development. While hardware makers like Nvidia and Marvell faced sharp declines, software and cybersecurity firms including CrowdStrike and Palo Alto Networks rallied, helping to limit broader market losses ahead of the Federal Reserve's interest-rate decision.
Chipmakers fell after prominent AI industry leaders, including Anthropic's CEO, suggested slowing the pace of AI model development, raising concerns about a pullback in hardware infrastructure spending.
Traders are pricing in a 93% likelihood that the Federal Reserve will raise interest rates by a quarter of a percentage point this week, marking the first hike since July 2023.