Philadelphia Semiconductor Index Falls Over 5%, Intel, Qualcomm Down 10%

U.S. stocks weakened during Tuesday's trading session, with the NASDAQ Composite Index falling below 26,000 points, down about 1.57%; the S&P 500 Index fell by 0.90%; the Dow Jones Industrial Average declined by 0.54%.

The semiconductor sector saw a widespread decline. NVIDIA dropped by 0.6%, TSMC by 2.67%, Broadcom by 1.52%, Advanced Micro Devices by 3.06%, Intel by 10.03%, ASML by 3.63%, and Qualcomm fell by over 9%.

Memory chip stocks suffered a significant pullback. Micron Technology fell by 5.15%, SanDisk dropped by 7.2%, Western Digital by 4.54%, and Seagate Technology by 4.24%.

Macroeconomically, the U.S. April CPI rose 3.8% year-over-year in the morning session, higher than the expected 3.7%, and reaching a new high since May 2023; core CPI rose to 2.8% year-over-year, further narrowing the scope for the Federal Reserve to cut interest rates within the year.

"The Big Short" Michael Burry had previously warned that after a "parabolic" rise, the valuation of the NASDAQ 100 Index is at an unsustainable high.