U.S. Stocks Fall This Week as Chip Selloff Intensifies, AI Valuation Fears Spread

According to Bloomberg, U.S. stocks fell this week (June 27) as chip stocks continued their decline, overshadowing a report showing lower-than-expected long-term inflation expectations. Interactive Brokers Chief Strategist Steve Sosnick said the S&P 500 briefly turned positive intraday but gains quickly faded, echoing multiple failed rally attempts seen throughout the week.

AI valuation concerns spreading from Asian markets are weighing on U.S. trading. Chinese hedge funds cited AI stocks as a potential bubble, while SoftBank Group's share price fell after reports of a potential OpenAI IPO delay to 2027. South Korea's Kospi index triggered a trading halt for the second time this week due to chip declines. Investors withdrew $8.5 billion from U.S. stocks over three months, marking the first net outflow in three months per Bank of America data.