Shares of technology companies slid as fears about the sustainability of an artificial-intelligence boom intensified after an unprecedented plunge for Korean memory-chip maker SK Hynix.
Taiwan Semiconductor Manufacturing fell even after the semiconductor fabrication firm posted a 68% increase in June revenue to $13.8 billion.
One strategist said investors were trying to ascertain who the winners and losers will be during the AI transformation of the global economy.
There's a risk red-hot AI demand for computer chips causes problems for other corners of the tech market, said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
"With regular consumer electronics, it's hard for them not to have higher costs," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. "Is that a sign we're going to have persistently high inflation because of these higher [chip] costs?"
