US stocks fell sharply on Friday amid a fresh selloff for chip producers and new geopolitical tensions.
The S&P 500 lost 1%, the Nasdaq 100 fell 3%, and the Dow lost 100 points.
Semiconductor manufacturers plunged on concerns that AI hyperscalers will invest less in AI infrastructure, reversing the rally from this year.
Risks of lower capital expenditure were also stemmed from improving Chinese AI models, including the latest Kimi release by Kimi.
Micron and Intel dropped more than 4%, while Nvidia lost 2%.
Meanwhile, pro-inflationary risks gathered momentum as the war in the Middle East continued and fuel costs picked up.
Economic headwinds were also stemmed by US President Trump claiming China interfered in the US 2020 presidential elections, risking the truce between both countries since last year's tariff's exchanges.
On the earnings front, Netflix sank 11% after it forecast another quarter of slowing sales.