New York Stocks Fall in Unison as Profit-Taking Hits AI Chip Related Stocks

New York stocks fell across the board amid a sentiment of securing profits from selling artificial intelligence (AI) semiconductor-related stocks. On the 17th (local time), the Dow Jones Industrial Average finished at 52,146.42, down 0.77%; the S&P 500 Index at 7,457.68, down 1.01%; and the Nasdaq Index at 25,520.24, down 1.40%.

The semiconductor sector saw a notable decline. On the Nasdaq, Nvidia fell 2.21%, Intel 2.00%, AMD 1.03%, and Micron 0.50%. The Philadelphia Semiconductor Index (SOX) dropped 1.63%, marking a third consecutive day of declines, and has fallen more than 20% from its high on June 22, entering a bear market zone.

Although Taiwanese semiconductor company TSMC announced earnings that exceeded market expectations, boosted by rising demand for AI chips, investors are scrutinizing the pace at which AI investments translate into actual profits. High growth expectations have already been largely reflected in stock prices.

Technological advancements by Chinese companies also acted as a burden on U.S. semiconductor-related stocks. As Chinese startups unveiled open-source AI models one after another, low-cost models spread throughout the market. Chinese AI startup Moonshot AI introduced its free open model 'Kimi K3'.

Movements in individual stocks and major assets were mixed. SK Hynix American Depositary Receipts (ADR) rose 1.13%, rebounding, while Netflix plunged 7.26% as its third-quarter earnings outlook fell short of market expectations. International crude oil (WTI) surged 4.46% to $82.47 per barrel, and the U.S. 10-year Treasury yield fell 0.024 percentage points to 4.545%.