US Stocks Drop Further
The S&P 500 fell 0.7% after testing record highs earlier in the session, the Nasdaq 100 slid 1.4% and the Dow was down 0.3% as a sharp reappraisal of stretched tech and chip valuations drove a broad rotation.
The selloff was concentrated in AI and semiconductor names, with Nvidia down 2.8%, Broadcom losing 3.3% and Micron falling 4.2%, and KLA off 3.9% amid renewed uncertainty around the scale and timing of large AI investments. The move was reinforced by a firmer US yield backdrop, with higher long-end rates raising discount rates for long-duration growth assets and accelerating profit-taking after January’s outsized gains.
Earnings amplified volatility, with Intuit tumbling 10.9% and PayPal plunging 20.3% following results and management changes. In contrast, Palantir climbed 6.8% on a stronger outlook, while results from Merck boosted their shares 2.2% for a positive session for pharmaceuticals.
Source: Tradingeconomics.com
