A confluence of pressures, including falling chip stocks, renewed Middle East conflict, inflation, and the prospect of interest-rate hikes, have hit stocks recently. Thursday saw the Nasdaq composite fall 1.5%, the S&P 500 slip 0.5%, and the Dow Jones Industrial Average decline 0.2%, or 105.67 points. Despite these swings, major indexes remain near record highs, with the S&P 500 closing about 1% shy of its June all-time peak.

Investor concerns over chip maker Taiwan Semiconductor Manufacturing's spending plans, rather than its positive outlook, have contributed to a rough patch for the sector. Shares of chip companies worldwide declined, extending previous losses. The significant gains in chip stocks had previously propelled markets to record levels, and their current retreat is prompting some investors to reallocate funds into sectors like healthcare and financials.