NASDAQ Opens Lower as Chip Selloff Deepens

Dow Jones07-17 21:41

The chip-stock selloff is accelerating.

The Nasdaq composite is down nearly 2% in early trading Friday morning, with the Dow industrials and S&P 500 also sliding about 1% apiece.

Investors have been dumping shares of chip makers in recent weeks amid doubts that vast spending on the AI buildout can justify some firms' lofty valuations. The release of a new model from China's Moonshot AI that claims to outperform some U.S. systems has added to concerns, analysts said.

Intel, Applied Materials, Corning and Advanced Micro Devices are among those in the space posting the biggest declines. Netflix shares are also sliding, tumbling roughly 11%, after the streamer warned of slower growth in the third quarter.

The U.S. moves follow a bruising session overseas that sent Taiwan and Japan's benchmark indexes falling 6.5% and 4%, respectively. Trading in South Korea's Kospi index was closed for a holiday.

Oil prices rose, with Brent crude futures ticking up above $86 a barrel amid ongoing tensions between the U.S. and Iran.

Write to Caitlin McCabe at caitlin.mccabe@wsj.com

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