S&P 500 and Nasdaq Fall as Inflation Heats Up and Chips Sell Off

Markets Sold Off Tuesday

S&P 500 down. Nasdaq down. Semiconductors leading the drop. Three separate pressure points hit the same session.

Chips Led the Damage

Semiconductors sold off hard. When chips move, tech follows. That relationship is consistent. The sector dragged both indices lower and set the tone early.

Macro Piled On

Oil rebounded. Inflation came in stronger than expected. Both pushed bond yields higher. Higher yields raise the discount rate on future earnings. Growth stocks feel that first. That is not theory. That is how the repricing works.

The inflation print mattered because it shifts rate cut expectations. Fewer cuts, longer wait, more pressure on valuations. Markets priced that in fast.

What This Means for Traders

• Hot inflation plus rising yields is a known compression trade. Growth and tech take the hit. Tuesday followed the script.
• Semiconductor weakness is the signal to watch. If semis do not recover quickly, Nasdaq stays under pressure. The sector does not hide.
• ChartOdds earnings data on chip names shows which ones have a track record of bouncing back after macro-driven selloffs. History does not guarantee the next move, but it narrows the field.