US Stocks Drop as Chipmakers Sink

2026-07-01 20:17 By Isabela Couto 1 min. read

US equity indices closed lower on Wednesday as investors reassessed the sustainability of the AI-driven rally.

The S&P 500 fell 0.2%, while the Nasdaq 100 dropped 1.5%, pressured by a sharp selloff in semiconductor stocks.

Major chipmakers led the decline as concerns persisted that AI-related investments may have become overstretched.

Micron Technology plunged 10.6%, while AMD lost 6.9% and Intel dropped 9%.

In contrast, Meta surged 8.8% after announcing plans to develop a cloud business aimed at monetizing excess AI computing capacity.

Other hyperscalers within the Magnificent Seven extended their rebound, with Microsoft rising 3%, Amazon gaining 1.4%, and Alphabet up 1.1%.

Meanwhile, the Dow Jones closed near flat as non-tech sectors outperformed.

Data showed US manufacturing activity expanded for a sixth straight month, while input cost pressures eased.

Also, Fed Chairman Warsh noted that inflation risks are decreasing, limiting the need for an urgent hawkish response by the Fed.



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