Nasdaq, S&P 500 Retreat as Chip Sell-Off Raises AI Valuation Concerns

US stocks recovered from their session lows but major indexes remained under pressure as a global sell-off in semiconductor stocks fueled concerns about artificial intelligence-related valuations, Amalya Dubrovsky, Rian Howlett, Karen Friar and Jake Conley reported for Yahoo Finance.

Technology stocks are coming under pressure from a global semiconductor sell-off.

The tech-heavy Nasdaq Composite was down about 1.6 percent after earlier falling nearly 3 percent. The S&P 500 declined roughly 1 percent, while the Dow Jones Industrial Average edged up 0.1 percent.

Technology shares continued to face selling pressure after weakness in several high-profile AI-related companies.

SpaceX, according to the report, recorded its third consecutive day of losses before rebounding and briefly trading about 5 percent higher later in the session.

Meanwhile, a sharp sell-off in South Korean memory chip manufacturers SK Hynix and Samsung Electronics heightened concerns about whether AI-related stocks have become overvalued.

Both companies reportedly lost more than 12 percent, contributing to a decline in South Korea’s Kospi Composite Index.

Investor attention is now focused on earnings results from Micron Technology, which are expected to provide insight into the strength of demand for memory chips used in AI systems.

Micron shares fell by as much as 12 percent after reaching a record high close the previous day.