Investors continued selling chip and memory stocks, spooked by concerns over tech giants’ spending and China’s AI advancements. Asian chip stocks plunged, with South Korea’s Kospi index down 10% and Japan’s Nikkei down 4%. In the U.S., memory makers Sandisk and Micron saw significant declines, contributing to a 4.5% drop in the PHLX semiconductor index.

Conversely, software stocks recovered, with Workday and Thomson Reuters gaining as earlier fears of AI disruption subsided. However, these gains weren't enough to lift the Nasdaq Composite, which lost 0.2%. The Dow Jones Industrial Average saw a boost from strong earnings, with Sherwin-Williams and Coca-Cola rising significantly, pushing the Dow up 1% or 537 points.

Meanwhile, oil prices fell for a third session, dropping below $80 a barrel amid a pause in strikes and diplomatic efforts. In other news, Visa announced it would cut 7% of its staff, about 2,600 jobs, primarily in technology and product teams, citing efficiency gains with AI. This follows similar cuts by Intuit, Cisco, and Meta Platforms.