Investors Pivot from AI as Dow Climbs and Chip Stocks Stumble

The PHLX semiconductor index tumbled nearly 6% in morning trading, putting pressure on major players including Nvidia, Intel, and Micron. This decline briefly pushed the Nasdaq-100 into correction territory—defined as a 10% drop from recent highs—before the index managed to trim its losses. The shift in capital was evident as Dow components such as Sherwin-Williams, Salesforce, IBM, Coca-Cola, and Boeing posted gains of 4% or more, while health-care and consumer-staples stocks led the S&P 500.

Global markets mirrored this anxiety, with Asian tech shares facing heavy selling pressure. Japan’s Nikkei dropped 4%, and South Korea’s Kospi index finished the day 10% lower. These declines reflect growing skepticism regarding the escalating costs of the AI boom alongside fears that China is rapidly narrowing the technological gap. Meanwhile, Brent crude futures hovered around $82 a barrel as diplomatic efforts intensified to secure the Strait of Hormuz.