US stocks ended mixed on June 26, with the S&P 500 edging 0.05% lower as a sharp sell-off in artificial intelligence (AI)-linked semiconductor stocks overshadowed strong gains in healthcare shares.
According to Reuters, the Nasdaq fell 0.24% while the Dow Jones Industrial Average slipped 0.09%, as investors remained cautious over lofty AI valuations, persistent inflation and the prospect of further US interest rate hikes.
For the week, the S&P 500 lost 2.05%, while the tech-heavy Nasdaq tumbled 4.7%.
Chipmakers bore the brunt of the selling, with the PHLX Semiconductor Index plunging 5.3% on June 26 and ending the week down 7.9%, its worst weekly performance since early April.
Sentiment was further dampened by reports that OpenAI may delay its public debut until next year, while ON Semiconductor slumped nearly 24% after announcing a US$7 billion all-stock acquisition of Synaptics.
Offsetting some of the weakness, Apple rebounded 3.1% following its sell-off on June 25, while Moderna surged almost 13% after unveiling its drug development pipeline.
Investors also digested stronger-than-expected inflation data, which reinforced expectations for at least one Federal Reserve rate hike before year-end, despite an improvement in US consumer sentiment.
