New York Stocks Fall on Semiconductor Sell-Off... Nasdaq Down 1.4%

Dow Drops 0.77%
Nvidia Falls 2.21%

As selling pressure on semiconductor stocks related to artificial intelligence (AI) continued, the U.S. New York stock market closed lower across the board.

On the 17th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average ended trading at 52,146.42, down 406.55 points (-0.77%) from the previous session.

The Standard & Poor’s (S&P) 500 Index closed at 7,457.69, down 76.08 points (-1.01%), and the tech-heavy Nasdaq Composite Index finished at 25,520.24, down 361.70 points (-1.40%) from the previous session, respectively.

On a weekly basis, the S&P 500 Index declined by 1.6%, while the Nasdaq Index fell by 2.9%.

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The Philadelphia Semiconductor Index, which tracks 30 major U.S.-listed semiconductor companies, fell by 1.63% on this day, extending its losing streak to three consecutive sessions. The Philadelphia Semiconductor Index has entered a bear market, falling 20% from its high of 14,634.72 (closing price) on June 22.

Nvidia dropped 2.21%, and other major semiconductor companies such as Micron (-0.50%), AMD (-1.03%), and Intel (-2.00%) also posted losses.

However, SK hynix American Depositary Receipt (ADR) rebounded by 1.13%.

Netflix plunged 7.26% after its third-quarter earnings guidance, announced the previous day, fell short of Wall Street expectations.

The memory semiconductor sector had been leading the stock market rally in the second quarter. However, recent concerns over whether massive AI facility investments will bear fruit have triggered profit-taking sales.

David Morrison, senior market analyst at Trade Nation, a market intermediary, said, "While the earnings and demand trends remain robust, the recent profit-taking indicates that some investors are beginning to question how much longer the current pace of growth can be sustained."

This content was produced with the assistance of AI translation services.