Chip selloff drags global stocks lower on AI spending concerns
SMH•Global stocks fell, led by a 9% drop in the Philadelphia Semiconductor Index, as weak Qualcomm smartphone chip sales and concerns about AI infrastructure spending pressured technology shares. The Dow fell 2.9%, the S&P 500 lost 3.6% and the Nasdaq dropped 4.7%.
1. Chip shares lead losses
Global stocks fell on Thursday after a sharp semiconductor selloff, following Qualcomm’s smartphone chip sales miss and concerns that a Democrat-controlled US Congress could slow investment in AI infrastructure. Qualcomm shares fell 9%, while the Philadelphia Semiconductor Index slumped 9%.
2. Major indexes retreat
The Dow Jones Industrial Average fell 2.9%, the S&P 500 slid 3.6% and the Nasdaq Composite dropped 4.7%. The MSCI All-World index lost 2.6%, and Europe’s STOXX 600 fell 0.38%. The Nasdaq was on track to confirm a correction from its record closing high.
3. Oil and bond yields
Brent crude settled 3.88% higher at $98.29 a barrel. The yield on benchmark 10-year US Treasury notes fell 5.93 basis points to 4.835%.
