Global equity markets diverged sharply, with technology stocks retreating from recent highs while gold advanced. The Nasdaq Composite dropped 0.8 percent to 26,363, driven by a deepening selloff in chipmakers, even as the Dow Jones Industrial Average reached a record high of 54,349, up 0.5 percent.
The semiconductor sector led the decline. Nasdaq 100 futures tumbled 1.9 percent earlier in the session as the chip selloff gathered pace. AMD shares fell 8 percent in pre-market trading after SpaceX said it would stop purchasing AMD chips in favor of Nvidia—a procurement shift that removes a meaningful demand source for AMD and concentrates high-performance AI chip spending further into Nvidia's column.
Nvidia bucked the broader sector trend, rising 3.4 percent to $219.22, as demand for AI-oriented chips held firm despite weakness elsewhere in the supply chain.
The chip sector's decline pulled down large-cap technology broadly. Amazon fell 1.7 percent to $272.65, Alphabet dropped 4.0 percent to $362.43, Microsoft declined 1.1 percent to $487.46 and Tesla fell 1.8 percent to $321.55.
Gold posted its biggest one-day gain since February, climbing to its strongest level since June. The rally was attributed to cooling inflation fears, partly tied to renewed hopes for an Iran deal, with investors rotating toward assets perceived as inflation hedges.
U.S. private sector employment increased by 44,000 in July, the lowest monthly reading since the start of the year, adding to the cautious macro backdrop weighing on growth-sensitive equities.
The S&P 500 eased 0.2 percent to 7,724, while the Russell 2000 fell 0.6 percent to 3,019. Gold stocks strengthened alongside the metal. The Dow's record close underscored resilience in non-technology segments of the market even as chip-exposed names sold off.
