The Nasdaq 100 experienced a notable decline of 1.4% on Thursday, reflecting a broader retreat in the technology sector. The slump was primarily triggered by the latest quarterly results from Taiwan Semiconductor Manufacturing Co. (TSMC), which failed to provide the anticipated boost to artificial intelligence stocks.
Market Sentiment Shifts
Investors appeared cautious as TSMC’s performance raised questions about the immediate sustainability of the AI-driven market surge. Despite the company's central role in the global semiconductor supply chain, the data was not enough to offset growing skepticism regarding short-term valuations in the tech space.
Geopolitical Headwinds
The market pressure was further compounded by external factors, as traders closely monitored a deteriorating situation in the Middle East. The combination of cooling tech enthusiasm and heightened geopolitical risks led to a defensive shift across major US indices, putting an end to the recent streak of gains for several high-profile chipmakers.
