Semiconductor shares led Tuesday’s selloff as AMD fell 10%, the Nasdaq dropped 1.8%, and the S&P 500 lost 0.9%, outweighing support from lower oil prices after comments on the Strait of Hormuz.
US stocks fell Tuesday as investors continued rotating out of semiconductor names, with a broad AI chip selloff dragging the market lower after Monday’s rebound faded. The Nasdaq lost 1.8%, the S&P 500 dropped 0.9%, and the Dow slipped 84 points. The iShares Semiconductor ETF fell nearly 6%, AMD dropped 10%, and Micron and Broadcom also declined as investors worried the AI chip rally had advanced too far, too fast. Oil prices fell below $90 after fresh comments on the Strait of Hormuz, but the relief from lower energy prices was outweighed by weakness in technology stocks.