The S&P 500 closed lower on Tuesday, pressured by declines in Micron Technology and other semiconductor companies amid growing questions over the durability of the artificial intelligence rally. Asian and US chip stocks dropped after Samsung Electronics reported earnings that failed to meet elevated investor expectations. Micron and other memory chip firms declined, dragging down the PHLX semiconductor index. Reports that Chinese startup DeepSeek is creating its own AI chip added to concerns about reliance on major suppliers. Preliminary figures showed the S&P 500 falling 34.07 points, or 0.45 percent, to 7,503.36. The Nasdaq Composite dropped 310.06 points, or 1.19 percent, to 25,811.10, while the Dow Jones Industrial Average declined 140.30 points, or 0.26 percent, to 52,915.61. The selloff reflects ongoing volatility in AI-related stocks as investors question whether recent gains have made shares overvalued. Zachary Hill of Horizon Investments noted that expectations for these companies have become difficult to surpass. Oil prices increased after reports of attacks near the Strait of Hormuz. Fiserv shares rose on news of potential talks to sell its payments business. The Federal Reserve is set to release minutes from its latest meeting on Wednesday.
