A selloff in chip stocks pulled the S&P 500, the Nasdaq Composite and the Dow lower, ending the Dow's three-day winning streak. Broadcom's CEO likened AI investing to casino gambling, and his comments landed alongside reports of a Chinese DRAM advance.
The Dow Jones Industrial Average slipped approximately 0.2-0.4%, or around 137-180 points on October 13, ending a winning streak at three days. The S&P 500 and the Nasdaq Composite also edged lower as semiconductor stocks dragged the broader market down.
Chips lead the decline
Semiconductor names led the pullback after Broadcom CEO Hock Tan spoke about AI investing. According to Crypto Briefing, he likened it to "casino gambling." His comments landed alongside reports that Chinese memory chipmaker ChangXin Memory Technologies, known as CXMT, has advanced work on a new DRAM architecture.
Micron Technology, the largest US memory maker, saw its shares drop approximately 4-6%. Memory and semiconductor stocks also sold off globally.
The Philadelphia Semiconductor Index extended its losing streak to five or six sessions, its longest run of declines in over a year. The index remains up significantly year-to-date.
Earnings season opens with mixed results
The pullback came as third-quarter earnings season kicked off. JPMorgan Chase reported mixed results that did not lift sentiment or offset the weakness in tech.
A day earlier, on October 12, the Dow climbed 0.38% to close at 51,850.55. Treasury yields are hovering around 5.24%, a level that tends to weigh on high-valuation growth stocks.
Money rotates toward value sectors
The session showed signs of investors shifting money rather than fleeing outright. Capital moved away from growth and technology stocks and toward value sectors such as energy and financials.
Source: Crypto Briefing
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