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Wall Street ends lower on semiconductor selloff as AI spending concerns mount | Reuters

SUMMARY
Indexes down: Dow 0.09%, S&P 1.44%, Nasdaq 2.21%
Philadelphia SE Semiconductor index falls 7.9%
CBOE Volatility Index at an over-one-week high

June 23 (Reuters) - The Nasdaq and the S&P 500 closed at more than one-week lows on Tuesday, dragged down by sharp losses in semiconductor stocks as investors scrutinized growing debt-funded ‌AI spending and braced for a more hawkish U.S. Federal Reserve.
The Dow ended slightly lower.

The Philadelphia SE Semiconductor index (.SOX), opens new tab tumbled 7.9% and the S&P 500 information technology sector index (.SPLRCT), opens new tab slipped 3.7%.

Nvidia (NVDA.O), opens new tab dropped 4.1% and Alphabet (GOOGL.O), opens new tab fell 1% while chipmakers Intel (INTC.O), opens new tab, Marvell Technology (MRVL.O), opens new tab and Advanced Micro Devices (AMD.O), opens new tab lost between 5.8% and 9.4%...

Concerns over hyperscalers' debt-funded AI spending have contributed to the selloff. Elon Musk's SpaceX (SPCX.O), opens new tab, which debuted this month, has joined a list of megacaps tapping the bond market to raise capital.

Shares of SpaceX rose 1%, following losses in the last three sessions.

Memory chipmakers Micron Technology (MU.O), opens new tab and SanDisk (SNDK.O), opens new tab, among the best performers on the S&P 500 this year, both fell around 13%.

Micron's earnings on Wednesday could offer clues on the outlook for the memory and AI chip sector after a searing rally this year...

The CBOE Volatility Index (.VIX), opens new tab, Wall Street's fear gauge, hit an over-one-week high, climbing 2.23 points to 19.52.

Six of the 11 major ‌S&P 500 ⁠sectors moved higher, with consumer staples(.SPLRCS), opens new tab rising the most at 1.8%. With highly priced tech shares coming under pressure recently, investors have shifted focus to other areas of the market.

Traders are increasingly betting on a second interest rate hike by the Fed by December, according to LSEG data, compared to expectations of just one 25-basis-point hike two weeks ago, as investors price in hawkish monetary policy under new Chair Kevin Warsh.

Personal Consumption Expenditures Price ⁠Index data, the Fed's preferred inflation gauge, is expected on Thursday...

Declining issues outnumbered advancers by a 1.31-to-1 ratio on the NYSE. There were 120 new highs and 187 new lows on the NYSE. On the Nasdaq, 2,181 stocks rose and 2,636 fell as declining issues outnumbered advancers by a 1.21-to-1 ratio.
The S&P 500 ⁠posted 12 new 52-week highs and five new lows while the Nasdaq Composite recorded 132 new highs and 182 new lows.
Volume on U.S. exchanges was 24.1 billion shares, compared with the 22.53 billion average for the full session over the last 20 trading days.

https://www.reuters.com/business/nasdaq-futures-fall-2-tech-worries-fed-hike-bets-2026-06-23/

Wall Street ends lower on semiconductor selloff, as AI spending concerns mount
https://www.straitstimes.com/business/companies-markets/wall-street-ends-lower-on-semiconductor-selloff-as-ai-spending-concerns-mount

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