U.S. chip stocks fell nearly 2% amid broader market unease ahead of May CPI data expected to show inflation above 4%.
U.S. tech stocks retreated on Tuesday, with the SOX chip index dropping nearly 2% despite a sharp decline in oil prices. The selloff deepened midday, exceeding 8% at its lowest point, signaling broader market nervousness beyond energy concerns.
The downturn extends into Wednesday, with Asian indexes slumping and U.S. futures trading lower ahead of the May Consumer Price Index report. Headline inflation is forecast to rise above 4% for the first time in three years, while core inflation remains near 3%. The data will influence both equities and a 10-year Treasury auction later in the day.
Market sentiment has also been rattled by overnight missile strikes between the U.S. and Iran, the most direct exchange since a fragile ceasefire began two months ago. Crude prices showed early volatility in response to the escalation.