FX.co ★ US Stocks Dip Amid Hot Inflation and Chipmaker Weakness

US stock indices finished lower on Wednesday as hotter‑than‑expected inflation data and renewed volatility in the AI infrastructure space weighed on sentiment. The S&P 500 slipped 1.1%, the Nasdaq lost 2%, and the Dow Jones Industrial Average declined by 49 points.

Semiconductor stocks extended their recent slide after ASML reported it could not keep up with surging demand for chip‑fabrication equipment, while Chinese rivals rolled out upgraded products that are closing the gap with US and South Korean technologies. At the same time, stronger headline and core inflation readings reinforced expectations that the Federal Reserve may deliver another rate hike before year‑end.

Nvidia fell 3.2%, Broadcom dropped 3.1%, Micron slid 4.1%, and AMD tumbled 5.7%. In financials, Bank of America sank 4.8% after both equity and fixed‑income trading revenues came in below forecasts. Morgan Stanley ended 2.7% lower despite beating expectations for equity‑trading revenue, while BlackRock gained 0.7%, supported by robust asset‑management inflows that lifted fee income.