U.S. stocks tumble as September begins, with investors losing enthusiasm for chip stocks.

On September 3, Wall Street’s major indexes took a sharp downturn, with the S&P 500 dropping over 2% and the Nasdaq Composite falling more than 3% as investor optimism about AI cooled, triggering a broad market sell-off. This marked the largest daily decline for the S&P 500, Nasdaq, and Dow since early August. Chip stocks were particularly hard hit, with AI giant Nvidia plummeting nearly 10%, and the PHLX chip index slumping 8%.