AI slowdown fears drag Nasdaq as Nvidia, chipmakers slide

U.S. stocks slipped as fears of an AI slowdown weighed on sentiment; Nvidia fell about 3.2% to its lowest in nearly three weeks, helping drag the Nasdaq lower. At 9:45 a.m. ET, the Dow Jones fell 126.58 points (0.24%), the S&P 500 dropped 0.64%, and the Nasdaq Composite declined 1.02%. The Philadelphia Semiconductor Index slid around 6%, with Intel, AMD and Marvell down, while some software names rose as investors rotated into defensives. Oil prices climbed and traders priced in a higher probability of a Federal Reserve rate hike, underscoring a cautious market mood. Many viewed the move as a pause in AI exuberance rather than a lasting downturn.