U.S. stocks declined as investors retreated from volatile artificial-intelligence investments. The Dow Jones Industrial Average lost 130.76 points, or 0.25%, to 52,925.15. The S&P 500 fell 0.45%, and the tech-heavy Nasdaq composite dropped 1.16% from its June 2 peak.

Selling pressure intensified after Samsung Electronics’ earnings outlook failed to meet elevated investor expectations, contributing to a nearly 5% drop in South Korea’s Kospi Composite index. In the U.S., the PHLX Semiconductor Sector index saw a 4.65% decline, reflecting concerns about the sustainability of the AI data center chip sales boom.

Renewed disruptions in the Strait of Hormuz also contributed to market jitters. The sell-off signals investor caution regarding the rapid ascent of AI-related stocks and broader geopolitical risks.