Semiconductor Stocks Plummet as AI Development Slows Down

The US stock market declined on Monday as semiconductor stocks plummeted in response to calls for slowing down AI development. The Philadelphia Semiconductor Index dropped by a significant 5.86%, with Nvidia, Micron, and Intel leading the decline.

The slump was also attributed to rising Treasury yields, which briefly touched 5% for the first time since October 2023. Oil prices above $100 a barrel added to the pressure on markets.

However, software and cybersecurity stocks bucked the trend, with ServiceNow, Adobe, and Workday rising by notable percentages.