Chip stocks plunge amid AI profit concerns, dragging Wall Street lower

A sharp decline in semiconductor stocks triggered broader losses across major US indexes on Wednesday. The Nasdaq 100 fell 1.8%, marking the index's longest losing streak since 2008.

Market participants are increasingly skeptical about whether substantial investments in AI infrastructure will deliver profitable returns, despite strong demand for semiconductor chips. The sector selloff reflects growing doubts over the financial viability of the AI investment boom.

Federal Reserve Chairman Kevin Warsh struck a neutral tone on interest rate policy during discussions at the International Monetary Fund meetings, offering no clarity on the central bank's near-term direction as market volatility persists.