New York —
The stocks that have fueled Wall Street’s powerful AI rally are suddenly under pressure as investors evaluate rising tensions in the Middle East, take profits after a historic run and reassess where to find value.
After months of hitting record highs, semiconductor chip stocks have dropped in recent weeks, weighing on the broader US stock market. The S&P 500 and Nasdaq Composite are down almost 2% and 5%, respectively, since their record highs on June 2.
The AI boom catapulted chipmakers into the spotlight: The semiconductor and semi equipment industry added nearly half of the S&P 500’s market value gains this year, according to Mike O’Rourke, chief market strategist at JonesTrading.
But the speed and size of the rally has fueled debate about its sustainability.
