Chip Stocks Lead Wall Street Selloff as Oil Climbs and Netflix Disappoints

US stocks came under renewed pressure as a steep selloff in semiconductor shares rattled the broader market. A closely watched chip index was on track for a drop of around 20% from its recent highs, as investors reassessed stretched valuations and the assumptions underpinning the artificial intelligence trade. Analysts characterised the pullback as more of a positioning and valuation reset than a sign that the AI infrastructure build-out is ending, with attention turning to upcoming results from large cloud-computing companies that buy chips. Adding to the pressure, oil rose about 2% to above $80 a barrel as conflict in the Middle East intensified, reviving inflation concerns, while streaming giant Netflix fell sharply after its earnings disappointed investors. The combination of falling chips, rising energy costs and a high-profile earnings miss weighed on sentiment even as parts of the quarter's corporate results came in solid. Traders are now watching whether the volatility deepens or stabilises as the earnings calendar accelerates in the days ahead.