US Stock: S&P, Nasdaq end lower on semiconductor selloff as AI spending concerns mount

S&P 500 fell 1.45 percent to 7,364.37 and the Nasdaq dropped 2.21 percent to 25,587.84 as semiconductor stocks sold off on concerns about excessive AI-related capex and debt-funded spending by hyperscalers. Nvidia, Alphabet, Intel, AMD, Marvell, Micron and SanDisk all declined, while the CBOE Volatility Index hit a one-week high. Traders are increasingly pricing in a second Fed rate hike by December under new Chair Kevin Warsh, ahead of Friday's PCE inflation data.