S&P 500, Nasdaq Slide as Chipmaker Rout Deepens

Broad selling in chipmakers has pulled the S&P 500 and Nasdaq into negative territory, as investors rotate away from AI-infrastructure names that powered much of this year's rally. The pullback reflects growing unease over stretched valuations in the semiconductor space.

Index futures softened through the session as traders reassessed exposure to mega-cap tech, a sector that has driven a disproportionate share of headline index gains. With chip stocks acting as a key swing factor, further weakness there could keep pressure on both benchmarks into the next session.

Market breadth remains a watchpoint: a narrow group of AI-linked names has masked underlying softness elsewhere, meaning index-level moves may understate stress building beneath the surface.