Global equities decline on renewed skepticism over AI growth, pushing semiconductor index near bear-market territory.
Global equities extended losses as doubts over the AI trade triggered a selloff in technology stocks. The S&P 500 fell 0.51% in the session, with futures down an additional 0.78% overnight, while Asian markets saw sharper declines in the Nikkei, CSI 300, and Hang Seng.
The Philadelphia semiconductor index dropped 4.29%, reaching an eight-week low and nearing a 20% decline from its recent peak. The index has shed 18.91% in less than a month, reversing its strongest quarterly performance since the early 1990s. Mega-cap tech stocks also retreated, with the Mag-7 down 1.27%, led by Alphabet’s 4.44% decline after reports of delays to its Gemini 3.5 Pro AI model.
The broader S&P 500 decline occurred despite nearly three-quarters of its constituents advancing, underscoring the outsized impact of tech sector weakness on the index.