AI Doubts Hit Nasdaq, S&P 500 as Chip Rally Unwinds

Global equity indices with heavy technology weightings are feeling the pressure after a record wave of money poured into a leveraged semiconductor ETF last week failed to deliver. Renewed doubts over the payoff from massive artificial intelligence infrastructure spending have triggered a sharp reversal in chip-stock sentiment.

Because semiconductor names carry outsized influence in benchmarks like the Nasdaq Composite and broader US large-cap indices, the pullback is rippling across index-level performance rather than staying contained to single stocks.

Index traders are now watching whether this AI-driven volatility spreads into other growth-sensitive sectors, which would deepen drawdowns across major global benchmarks heading into the final stretch of the year.