Nasdaq Eases 1.5%, S&P 500 Falls 0.2% on Tech Selloff; Semiconductor ETF Drops 5.5% Wednesday

On Wednesday, the S&P 500 fell 0.2% and the Nasdaq 100 eased 1.5% as investors rotated out of technology and chipmaker stocks, while the Dow Jones ended flat. The VanEck Semiconductor ETF (SMH) lost 5.5%, with the Philadelphia Semiconductor Index falling 6.3% as investors locked in gains from a record quarter.

Federal Reserve Chair Kevin Warsh said on Wednesday that he does not view artificial intelligence as a threat to job creation, noting that AI-generated jobs will likely exceed displaced roles. Oil prices returned to pre-Iran war levels and Treasury yields eased, supporting market sentiment.