The S&P 500 and Nasdaq fell 0.25% and 1%, respectively, on Tuesday, even as oil prices retreated, as the recent rebound in semiconductor shares lost momentum. Chip stocks came under renewed pressure, with the iShares Semiconductor ETF sliding more than 3% after a 6% surge on Monday. The fund had tumbled 10% on Friday — its worst single-day drop in six years — amid concerns that the AI-driven rally in chip makers had become overheated.
Micron Technology declined nearly 5%, surrendering part of Monday’s 10% rebound. The stock had already shed about 20% over two sessions last week, including a sharp 13% loss on Friday. Broadcom, which also experienced a steep two-day selloff last week, slipped more than 2%.
In contrast, the Dow Jones Industrial Average added 0.2%, supported by gains in Johnson & Johnson, Visa, and JPMorgan Chase.
