Wall Street Tumbles as Geopolitical Tensions Escalate and Memory Chip Rout Erases $100 Billion

Market Overview - Wall Street experienced a significant sell-off, with the Dow Jones Industrial Average closing down 793.78 points, or 1.73%, at 45,166.33, and the S&P 500 falling 1.59% to 6,374.30 [2] - The Nasdaq Composite dropped 2.08% to 20,962.85, reflecting a massive valuation reset in the tech sector as the AI-driven shortage trade unwound [3] Semiconductor Sector - The semiconductor industry lost $100 billion in market capitalization, marking a sharp reversal from previous gains driven by AI-related demand [4][10] - A high-level meeting took place between U.S. Envoy Steve Witkoff, President Trump, and Micron Technology CEO Sanjay Mehrotra, focusing on the semiconductor landscape [5][10] Geopolitical Developments - U.S. Envoy Steve Witkoff indicated that the administration is pursuing a peace deal with Iran, having presented a 15-point proposal, with a response expected soon [6][10] - The geopolitical situation worsened as Yemen's Houthis announced their entry into the conflict to support Iran, coinciding with air raid sirens in Southern Israel [7][10] Banking and Regulatory Updates - The Federal Reserve released weekly H.8 data, which is being analyzed for signs of credit tightening or liquidity shifts amid market stress [8] - A consumer alert was issued by the Federal Reserve regarding a rise in scam calls targeting individuals by posing as Fed officials [9]