Tech Rout, Oil Surge Shake Markets – US Market Wrap

Wall Street was rattled again by a selloff in chipmakers on concerns over whether massive AI investments will justify elevated valuations, while a jump in oil prices pushed bond yields higher.

This year’s best-performing corner of the market was hit hard, with a semiconductor gauge dropping 4.6%. Even Samsung Electronics’ record profit failed to attract buyers.

The Nasdaq 100 fell 1.8%, with SpaceX joining the index. Despite tech weakness, most S&P 500 companies advanced, signaling a rotation into other sectors.

A flare-up in geopolitical risks drove crude higher in late trading after the US Treasury revoked a waiver allowing Iranian oil sales in response to tanker attacks in the Strait of Hormuz. Concerns that rising energy costs could fuel inflation weighed on Treasuries.

Escalating tensions in the key energy chokepoint risk undermining an interim peace deal between Washington and Tehran.

Meanwhile, warnings of a bubble have been loudest in AI-linked areas, particularly semiconductors, where strong gains have left investors questioning whether the rally has become overextended.