Wall Street Corrects, Chip Stocks a Major Burden
US stock indexes weakened after posting sharp gains earlier this week. The market is beginning to reconsider the risk of a Federal Reserve interest rate hike this year and is questioning how much room the rally in AI-driven stocks can continue.
The S&P 500 fell 0.6%, the Nasdaq fell 1.5%, while the Dow Jones Industrial Average fell about 250 points from its record high. This decline suggests investors are beginning to take profits after the strong rally that previously supported the US stock market.
The greatest pressure came from chipmaker stocks, previously the driving force behind global market gains. Concerns over the AI sector's increasingly high valuations again cast a shadow over market movements. Micron and Sandisk each fell about 8%, while Nvidia fell 3%.
Meanwhile, hyperscaler stocks in the Magnificent 7 group are still trying to continue their recovery after lagging behind AI infrastructure companies since mid-May. However, overall market sentiment remains cautious as investors await clarity on the Fed's policy direction and the sustainability of the AI trend.
Source: Newsmaker.id
