Stocks Slide as Tech and Energy Take a Hit

Major U.S. stock indexes declined, led by the Nasdaq, due to a sell-off in chip and energy stocks. Nvidia shares dropped after news of potential export caps on AI chips, affecting the semiconductor sector. Meanwhile, energy shares fell following weak demand news, despite mixed earnings reports.

On Tuesday, major U.S. stock indexes experienced a downturn, prominently led by the Nasdaq as chip stocks sold off amid concerns of waning demand. Energy shares followed suit, dipping alongside declining oil prices.

A significant impact on the Nasdaq came from Nvidia, following media reports suggesting potential export caps on AI chips by the Biden administration. Consequently, shares of Nvidia saw a nearly 5% decline, triggering a broader sell-off in the semiconductor sector.

The energy industry was not spared as crude prices fell in response to a report that Israel might refrain from targeting Iranian oil shipments. This created headwinds for the energy index, which dropped 2.5% over the session.

(With inputs from agencies.)