Nasdaq falls 1.2% as AI and semiconductor stocks retreat

US stocks fell Tuesday as renewed selling in artificial intelligence and semiconductor shares pushed the Nasdaq Composite down 1.2% by early afternoon.

The S&P 500 declined 0.6%, putting it on track for a third consecutive loss after reaching a record high last week. The Dow Jones Industrial Average was down about 89 points, or 0.2%, at 1:54 p.m. Eastern time.

Micron Technology fell 7.6%, making the memory-chip producer one of the largest drags on the S&P 500. Other companies tied to AI infrastructure also traded lower.

The pullback followed sharp gains for many AI-linked stocks earlier in the year, which raised investor concerns about valuations and whether spending on data centers can sustain its pace.

Treasury yields remained near multiyear highs, adding pressure to stock valuations as investors monitored the outlook for interest rates.

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