Tech-Led Selloff Pushes Nasdaq Lower as Chip Stocks Slide

Cooling investor enthusiasm for AI, higher oil and upside inflation readings have shifted money into safer assets and pressured growth-stock valuations.

Overview

U.S. benchmarks fell with the S&P 500 off about 1.1%, the Nasdaq down roughly 2.1% and the Dow about 0.3%, as tech shares led losses.
Semiconductor names dropped sharply, dragging the VanEck Semiconductor ETF into a double-digit weekly loss and pulling major chipmakers such as Micron and Intel lower.
Several AI- and cloud-focused companies saw steep share declines while reports flagged elevated debt at at least one specialist compute provider, raising questions about financial strain in the AI supply chain.
Oil traded above $100 a barrel and recent wholesale inflation data ran hotter than expected, factors that pressured investor sentiment and helped energy stocks support the Dow.
Traders expect the Federal Reserve to hold rates at the late-October meeting and market volatility has risen, so investors will be watching chip demand signals and inflation readings for clues on the next market direction.