Chip Stocks Tumble on AI Anxiety as Oil Climbs: Markets Wrap
(Bloomberg) — A rout in chipmakers weighed on stocks as traders seek clues on whether massive artificial-intelligence investments will justify lofty valuations, with the market also wavering as higher oil prices lifted bond yields.
Wall Street’s best-performing corner this year was gripped by a renewed bout of volatility that sent a closely watched gauge of semiconductor firms down 4%. The Nasdaq 100 declined 1%. Not even Samsung Electronics Co.’s record profit was enough to entice global investors who are currently assessing the direction for the industry’s shares after a historic run.
Also denting the appetite equities was a rise in energy prices that followed attacks on shipping in and around the Strait of Hormuz, highlighting continued risks to vessels in the critical waterway. The latest geopolitical developments stoked worries about the outlook for inflation should peace negotiations between the US and Iran stall.
Global semiconductor shares jumped to record levels this year but have hit turbulence on fears about increased competition, possible overcapacity and whether plans for hundreds of billions of dollars in investment will pay off. Worries are rising that positioning in the Nasdaq 100 has become excessive and a 30% rally from late March stretched.
Gyrations in AI and semiconductor stocks have also been exacerbated by the impact of levered exchange-traded funds in the US and Asia.
Corporate Highlights:
SpaceX joins the Nasdaq 100 Index Tuesday as Wall Street brokerages launch coverage of Elon Musk’s rocket, satellite and artificial intelligence company with a clear consensus: buy the stock. Amazon.com Inc. is looking to raise at least $25 billion from a US dollar bond sale, its latest funding push as the company ramps up investment in artificial-intelligence infrastructure. Samsung Electronics Co.’s quarterly profit surged 19-fold, prompting investors to cash out of a near-150% rally this year that had baked in the AI-fueled growth. China’s DeepSeek is developing its own chip to help power artificial-intelligence systems, Reuters reported, citing unnamed sources. Rivian Automotive Inc.’s stock tumbled after the electric vehicle maker said it will sell 75 million shares to fund equity contributions related to a US Department of Energy loan.
Some of the main moves in markets:
Stocks
The S&P 500 was little changed as of 9:32 a.m. New York time The Nasdaq 100 fell 1.1% The Dow Jones Industrial Average rose 0.4% The Stoxx Europe 600 was little changed The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1438 The British pound was little changed at $1.3383 The Japanese yen rose 0.1% to 161.89 per dollar Cryptocurrencies
Bitcoin fell 1.1% to $63,107.8 Ether fell 1.1% to $1,772.94 Bonds
The yield on 10-year Treasuries advanced three basis points to 4.50% Germany’s 10-year yield advanced three basis points to 2.97% Britain’s 10-year yield advanced two basis points to 4.81% Commodities
West Texas Intermediate crude rose 1.6% to $69.67 a barrel Spot gold rose 0.1% to $4,170.47 an ounce ©2026 Bloomberg L.P.
