Down, Nasdaq slides as AI chip worries persist

Down, Nasdaq slides as AI chip worries persist: The S&P 500 edged lower and the Nasdaq fell sharply on Tuesday as chip stocks retreated amid lingering doubts about how durable the AI-driven rally is. Losses intensified after a Reuters report said China’s DeepSeek startup is developing its own AI chip, potentially reducing reliance on Nvidia and Huawei components. Nvidia shares dropped 1.8%, while the Philadelphia SE Semiconductor index slid 5.5% to a four-week low. Intel fell 8.2% and Micron dropped 7.3% among the biggest decliners on the S&P 500. In South Korea, Samsung shares fell even after reporting a 19-fold jump in second-quarter operating profit. The week ahead includes a catalyst: SK Hynix’s U.S. listing begins trading on Nasdaq. Meanwhile, Elon Musk’s SpaceX began trading in the Nasdaq-100 and fell 4.5%.