Stocks Slide With Futures as Chip Selloff Deepens: Markets Wrap
Global stock markets are experiencing a downturn as investors pull back from semiconductor and AI-related stocks due to concerns over valuation and market saturation. The selloff is driven by fears that the massive capital expenditure in AI may not yield immediate returns.
Why it matters
This shift signals a potential cooling of the AI investment boom, which has been the primary driver of global market growth over the past year.
This content was published on July 17, 2026 - 18:14 4 minutes (Bloomberg) — A selloff in chipmakers gathered pace on Friday, driving the group that has led this year’s stock rally toward a bear market on worries that the artificial-intelligence spending spree is becoming harder to justify.
This week’s semiconductor tumble is set to be the worst since the April 2025 tariff meltdown, with a key industry gauge sinking 20% from a record. A breakthrough from Chinese AI startup Moonshot further dented enthusiasm for the sector, which has also been hit by a rotation from richly priced tech names in favor of economically sensitive shares. The Nasdaq 100 lost 1.2%.
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