Nasdaq futures fall 2% as global chip sell-off continues: Live updates - CNBC
Stock markets experienced a weekly decline as semiconductor stocks fell due to increased competition from Chinese AI models and investor fatigue. Rising oil prices also impacted the market amid escalating tensions in the U.S.-Iran conflict.
Why it matters
The downturn reflects growing investor skepticism regarding the sustainability of aggressive AI spending and the potential for geopolitical instability to disrupt global markets.
Stocks fell again on Friday, with Wall Street posting a weekly decline, as traders weighed the latest moves in semiconductor names along with recent quarterly reports.
The broad market index lost 1.01% to end at 7,457.69, while the Nasdaq Composite dropped 1.4% to 25,520.24 as tech stocks came under scrutiny. The Dow Jones Industrial Average fell 406.55 points, or 0.77%, to close at 52,146.42.
The major stock benchmarks notched weekly losses, with the S&P 500 off 1.6%, while the Nasdaq slid 2.9%. The Dow fell 0.9% on the week.
The VanEck Semiconductor ETF (SMH) posted its third weekly decline in four weeks, dropping almost 9% in the period. Semiconductors were hit especially hard earlier in the session after Chinese startup Moonshot AI unveiled a new model that it said narrows the gap with the top offerings in the U.S.
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