AI Slowdown Fears Send Global Chip Stocks Lower

Global semiconductor stocks came under pressure as several artificial intelligence executives proposed slowing the pace of AI development, stoking concerns about the industry's outlook.

A gauge of chip makers including Nvidia and Broadcom fell 5%, with declines seen across the U.S., Europe and Asia.

The selloff coincided with broader market rotation, as about 300 S&P 500 members rose. Brent crude, though off its highs, remained near $105 a barrel, adding to inflation worries ahead of the Federal Reserve's rate decision. The 10-year Treasury yield briefly topped 5%.