U.S. Stocks Sell Off as Nasdaq Falls 4% and AI Shares Tumble

U.S. stocks fell broadly, with the Nasdaq Composite losing about 4% as AI-linked shares across chips, memory, data-center equipment and power dropped more than 10%. The losses spread beyond the largest technology stocks.

The S&P 500 fell 2.7%, and the Nasdaq 100 lost 4.52%. Decliners outnumbered advancers nearly 4 to 1 on the Nasdaq, about 2.5 to 1 on the New York Stock Exchange and 1.6 to 1 among S&P 500 stocks.

Sandisk (SNDK), Western Digital (WDC), Micron Technology (MU) and SK Hynix (SKHY) each fell more than 10%, as did chipmakers AMD, Qualcomm and Arm. Losses also topped 10% for data-center connection and optical-equipment companies Astera Labs, Lumentum, Coherent, Credo and Marvell Technology, as well as chip-equipment makers Lam Research and Applied Materials.

AI cloud and data-center power companies Nebius, CoreWeave and Bloom Energy also dropped more than 10%. Bloom Energy and Sandisk each fell nearly 18%.

The S&P 500 fell below its 100-day moving average and September low. The Nasdaq Composite and Nasdaq 100 both dropped below their 200-day moving averages.