Wall Street Stumbles as AI Enthusiasm Meets Reality

The semiconductor sector bore the brunt of the selling pressure, with Nvidia and the iShares Semiconductor ETF extending losses from the previous session. This retreat highlights growing volatility in the AI trade that has dominated market sentiment throughout the year. The mood soured further when Netflix issued a weak earnings forecast, injecting fresh caution into a market already grappling with overextended valuations. These combined setbacks suggest a hardening skepticism among traders, who are now recalibrating their expectations for the tech sector's near-term performance.