Intel Slide Drags Chip Sector Toward Worst Selloff of the Year

A weak outlook from Intel pushed the semiconductor index toward one of its steepest declines this year. According to MarketWatch, investors read the company's caution on data centre orders as a sector signal. The stock fell more than six percent intraday and pulled the PHLX semiconductor index lower.

Analysts point to two factors. First, 'buyer exhaustion' has become visible after a fast run-up in valuations. Second, Tuesday's inflation reading is fuelling questions about whether big technology firms will sustain the capital-expenditure commitments they have flagged for next year.

Nvidia, AMD and Broadcom also traded lower during the session. Ahead of Donald Trump's trip to Beijing, investors are closely watching for any new signals on export restrictions. The chip-sector index was on track to close down more than three percent.