Broad market indices closed lower as AI infrastructure concerns weighed on semiconductor stocks, while cybersecurity firms and software providers saw significant gains.
Teradyne plunged over 13% to lead Nasdaq 100 losers as chip-testing demand outlook dimmed.
CrowdStrike surged over 13% as cybersecurity stocks rallied sharply on the day.
Palo Alto Networks jumped more than 13% amid a broad cybersecurity sector rally.
ASML Holding fell more than 7% on fears that AI development curbs could reduce demand for chip equipment.
Arm Holdings dropped more than 9% on AI spending slowdown fears and chip sector weakness.
WTI crude oil rose over 1% to a 3.75-month high on supply disruption fears after Saudi pipeline closure.
Advanced Micro Devices dropped more than 4% amid weakness in semiconductor and AI-related stocks.
Broadcom declined over 4% as AI infrastructure spending concerns pressured chip stocks.
Adobe Systems climbed more than 5% as AI slowdown fears eased competitive threats to software firms.
Nvidia fell over 3% as AI slowdown fears triggered a broad sell-off in chipmakers.
Salesforce rose over 4% as software stocks gained on reduced AI disruption risk.
Bank of America fell 4% after CEO noted flat Q3 sales and trading, dragging bank stocks lower.
Nasdaq 100 dropped 0.82% to a 6-week low, led by semiconductor and AI stock sell-off.
S&P 500 closed down 0.48% as chipmaker and AI stock weakness weighed on the broader market.
Dow Jones Industrial Average fell 0.29% amid broad market declines.
The Nasdaq 100 hit a 6-week low on Monday as major AI industry leaders proposed slowing the development of advanced models, sparking fears of reduced capital expenditure. While chipmakers faced heavy selling pressure, software and cybersecurity stocks rallied on the reduced risk of AI-driven market disruption.
AI stocks retreated after industry leaders, including the CEOs of Anthropic, OpenAI, and xAI, proposed slowing the development of advanced AI models, raising concerns about a potential reduction in capital spending.
Cybersecurity stocks rallied as investors rotated into the sector, viewing software and security firms as less vulnerable to the potential slowdown in AI-infrastructure spending.