US stock indices extended their declines on Monday amid renewed weakness in semiconductor shares and a worsening macroeconomic backdrop. The S&P 500 fell 0.6%, the Nasdaq 100 lost 2%, and the Dow dropped more than 150 points.
Chipmakers led the selloff on persistent concerns that major AI hyperscalers may be forced to scale back spending on AI infrastructure. SK Hynix ADRs slid 8% after surging 13% on Friday, following a report from a Korean broker suggesting the company could miss its next earnings. Nvidia, AMD, and Intel each fell more than 3%, while memory producers Sandisk and Micron lost 5% and 12%, respectively.
Equities across other sectors declined in tandem with US Treasuries after President Trump said the US would reinstate a blockade on Iranian ships in the Strait of Hormuz, escalating tensions and raising the risk of further inflationary energy supply disruptions.
Major banks were mostly lower ahead of this week’s earnings reports: JPMorgan and Bank of America each slipped 0.5%, while Citi fell 1.5%.
