AI Slowdown Fears Spark Selloff in Chip Stocks and US Equities

The US equities market suffered a downturn due to concerns over an AI slowdown, which led to a sharp selloff in semiconductor stocks. The Philadelphia Semiconductor Index saw its worst day since July, with a decline of -5.86%. This slump had a ripple effect on the broader S&P 500, causing it to drop by -0.48%.

Despite President Trump's attempts to reassure investors that the US has 'tremendous CRIMINAL and REGULATORY power' over these companies, chip stocks struggled to recover, ending near their session lows. This volatile performance underscored fragile risk appetite in September, a month notoriously known for its poor asset performance.

As the AI slowdown fears continue to weigh on equities, markets are bracing for further losses. In Asia, several indices such as the S&P/ASX 200 (-0.89%), KOSPI (-0.71%), Hang Seng (-0.23%), and Nikkei (-0.16%) have already entered negative territory.