The US markets ended lower on Thursday amid renewed weakness among artificial intelligence (AI)- related stocks, which led the sell-off seen on Tuesday. The concerns about an AI bubble and the possibility of a near-term correction have weighed on investors' sentiments. Major AI players Advanced Micro Devices (AMD), Palantir Technologies (PLTR), Oracle (ORCL) Nvidia (NVDA) and Chipmaker Qualcomm (QCOM) showed significant moves to the downside. Further, ongoing US government shutdown and uncertainty about further interest rate cut by Federal Reserve kept risk appetite subdued.
On the sectoral front, semiconductor stocks showed a substantial move back to the downside, with the Philadelphia Semiconductor Index tumbling by 2.4 percent. Besides, significant weakness was visible among software stocks, as reflected by the 2.2 percent slump by the Dow Jones U.S. Software Index.
Dow Jones Industrial Average slid 398.70 points or 0.84 percent to 46,912.30, Nasdaq tumbled 445.80 points or 1.9 percent to 23,053.99 and S&P 500 slumped 75.97 points or 1.12 percent to 6,720.32.
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