Chip selloff deepens Wall Street losses as doubts grew over AI returns
AI Market Summary
Semiconductor weakness is driving broad risk-off: Nasdaq 100 fell 1.8% and chipmakers slid for an eighth straight session, the longest streak since 2008, as investors question whether AI infrastructure capex will earn adequate returns. CoreWeave's 9.5% drop and signs of stress spreading to credit markets reinforce caution. Rotation into healthcare, financials and materials, plus safe-haven Treasury demand, suggests near-term pressure on AI-linked equities and a firmer bid for bonds and defensives.
Impact level
● High
Affected assets
NCSKNVDA2USD/USDT-1.46%
AI Insight · NCSKNVDA2USD/USDTAI Insight
▼ Bearish
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A significant selloff in semiconductor stocks affected major US indexes amid rising concerns regarding AI investment returns. The Nasdaq 100 dropped by 1.8%, continuing its longest losing streak since 2008. Market participants are questioning if AI infrastructure investments will yield profitable returns despite strong demand for chips. Federal Reserve Chairman Kevin Warsh maintained a neutral stance on interest rates during discussions at the IMF meetings.
