S&P 500 falls as chip stocks and geopolitical risks weigh
The S&P 500 and Nasdaq ended lower on Thursday as chipmakers like Intel and AMD gave back recent gains. While Nvidia and Microsoft rose on AI confidence, Arm Holdings fell on supply concerns and Whirlpool slumped after missing sales estimates. Investors also monitored U.S.-Iran peace talks and steady interest rate outlooks.
The S&P 500 fell 0.40% to 7,335.66 on Thursday as chipmakers retreated following a sustained rally in artificial intelligence stocks. The index gave back 29.46 points during the session, ending a period of record highs for U.S. equities. Investors are now pivoting toward labor market data to gauge the Federal Reserve's next move on interest rates.
### Chip Sector Pullback Dampens AI Momentum Arm Holdings shares tumbled after concerns surfaced regarding supply chain constraints for its new AI chip. These worries outweighed a strong earnings forecast from ARM. The PHLX chip index dropped on the news, though it maintains a gain of approximately 46% for the current quarter.
