Nasdaq posts steepest drop in nearly 8 months as chip stocks lead selloff
The Nasdaq Composite logged its steepest one-day drop in roughly eight months as semiconductor stocks led the selloff. The S&P 500 is also on track to end a nine-week winning streak. Signs of fatigue in the AI rally are pushing investors toward a more cautious stance.
CNBC Top News · Sean ConlonThe Nasdaq Composite posted its steepest one-day decline in roughly eight months as semiconductor stocks led a broad selloff. The S&P 500, which traded near record highs last week, is on track to end a nine-week winning streak, potentially closing what would have been its longest winning run since 1985. Chip names including Broadcom and Arm were among the day's biggest decliners.
Investors revisited stretched valuations across AI-linked equities after several analysts trimmed post-earnings expectations. CNBC reported that some strategists are again debating whether a market top is forming. Bitcoin slipping below the 60,000 dollar mark was read as a broader sign of cooling risk appetite.
On the macro side, a stronger-than-expected May non-farm payrolls print added uncertainty around the timing of any Federal Reserve rate cut. Futures markets trimmed bets on a September move. The end-of-week close will be a fresh focal point for the debate over how much further the AI rally has to run.
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