15 hrs ago

Chip stocks fall as inflation and Middle East tensions weigh

Why are big chip stocks under pressure? SK Hynix, AMD, Intel, Nvidia fall up to 6.5%; is the AI rally losing steam? · livemint.com

Several big chip companies saw their share prices fall on September 10.

Investors may have been selling shares to lock in profits after recent gains.

Tensions between the United States and Iran increased worries about energy supplies.

Oil prices rose above $105 per barrel, which can make inflation worse.

A US report showed that producer prices increased more than expected in August.

Higher inflation can affect what the Federal Reserve decides to do with interest rates.

Investors are also waiting for the next US consumer inflation report.

The stock declines may reflect broader economic worries, but the article does not establish that the AI rally is over.

Key facts

Largest reported decline: Intel fell 6.5% to $99.34.
SK Hynix move: Shares dropped 6% to $187 after reaching $191 the previous session.
Other major declines: Micron Technology fell 4.20%, AMD declined 3%, and Nvidia slipped 2.6%.
US producer inflation: The Producer Price Index rose 0.4% month over month and 5.4% year over year in August.
Core producer inflation: Excluding food and energy, the index increased 0.2% month over month and 4.6% year over year.
Oil price: Brent crude rose above $105 per barrel.
European Central Bank: The ECB raised its key deposit rate by 25 basis points, from 2.25% to 2.5%.

livemint.com · 16 hrs ago