Equities declined across Asia and the U.S. as a month-long rally in semiconductor stocks lost momentum, tied to rising inflation data and expectations of higher interest rates. Chip stocks, which had been the primary driver of AI-infrastructure-led gains, retreated on margin pressure and cap-ex cycle questions.
The pullback reflects investor reassessment of AI capex spending velocity and returns, a critical watch-point for CIOs planning data center buildouts and GPU procurement cycles.