Wall Street Ends Lower as AI Spending Fears Spark Selloff

Wall Street ended lower on Tuesday, with the Dow edging down, the S&P 500 falling nearly 1.5%, and the tech-heavy Nasdaq plunging about 2.2%. Jitters over debt-funded AI spending led to sharp losses in semiconductor and other big tech stocks.

Most Affected Semiconductor Stocks

• Intel (INTC): Shares dropped more than 6%.
• Nvidia (NVDA): Shares fell over 4%.
• Marvell Technology (MRVL): Shares tumbled more than 9%.
• Micron Technology (MU): Shares fell about 13%, despite being one of the best performers on the S&P 500 this year.
• SanDisk: Also declined roughly 13%.

Micron Earnings in Focus

All eyes are on Micron's quarterly earnings report due Wednesday. Nancy Tengler, CEO and CIO at Laffer Tengler Investments, called the report "hugely important," noting that investors will watch guidance on HBM4 memory for Nvidia's Vera Rubin platform and margins, which were 81% last quarter.

SpaceX Debut Continues Rocky Ride

Elon Musk's SpaceX, which debuted this month, continued its volatile trading, briefly dipping below its opening price of $150 before paring losses to close about 1% higher.

Middle East Developments

Investors also monitored Middle East developments as the Senate backed legislation to halt U.S. military action against Iran, though it remains unclear how this will affect the ongoing war as Washington continues peace negotiations with Tehran.