S&P 500 Wobbles as Chip Selloff Tests AI Rally Nerves
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Semiconductor names dragged on the S&P 500 after Tesla trimmed its spending outlook and Lam Research issued a softer-than-expected forecast, reviving concerns that AI infrastructure spending may be peaking.
Micron led decliners as investors questioned whether capital expenditure from hyperscalers can sustain current valuations across the index's mega-cap tech cohort.
With chipmakers carrying outsized weight in S&P 500 gains this year, any funding-driven pullback in AI capex threatens to amplify volatility across broader index performance.