US Stocks Dip Amid Hot Inflation and Chipmaker Weakness

US stock indices closed lower on Wednesday amid hotter-than-expected inflation data and continued volatility in the AI infrastructure sector. The S&P 500 fell 1.1%, the Nasdaq slipped 2%, and the Dow shed 49 points. Chipmakers extended this week’s losses after ASML said it could not keep pace with demand for semiconductor fabrication equipment, while Chinese competitors introduced improved products approaching the capabilities of US and South Korean firms. Meanwhile, headline and core inflation readings reinforced expectations that the Federal Reserve could deliver another rate hike this year. Nvidia lost 3.2%, Broadcom fell 3.1%, Micron declined 4.1% and AMD tumbled 5.7%. Among financial stocks, Bank of America fell 4.8% after both equity and fixed-income trading revenues missed estimates. Morgan Stanley closed 2.7% lower despite beating forecasts for equity-trading revenue, while BlackRock added 0.7% after stronger asset-management inflows boosted fee revenue.