Investors rotated out of high-multiple tech shares, pushing semiconductor and AI-related stocks sharply lower after recent gains.
US equities ended mixed as the Dow Jones Industrial Average climbed 263.03 points, or 0.51%, to $52,215.23, while the Nasdaq Composite fell 43.74 points, or 0.18%, to $24,932.08. The S&P 500 closed nearly flat, up just 1.20 points to $7,413.17, as gains in blue-chip and small-cap stocks offset losses in large-cap technology shares.
The Russell 2000 rose 0.62%, reflecting a shift toward smaller companies, while the Nasdaq 100 declined 0.32%. Semiconductor and AI-related stocks led decliners, with NVIDIA (-4.99%), AMD (-5.17%), and KLA (-3.40%) among the hardest hit. Other notable losers included SanDisk (-11.02%) and ASM International (-5.80%).
The rotation followed a strong run in tech stocks, with investors locking in profits ahead of upcoming earnings reports from major technology firms. The broad-based sell-off spanned chip designers, equipment makers, and memory-related companies.