NEW YORK, Oct 8 (Reuters) - Wall Street dipped on Thursday as crude prices surged on a spike in Middle East tensions and a cut in US output that fed inflation and rate-hike fears, while semiconductor stocks slumped.
All three major US stock indexes lost ground, with the tech-heavy Nasdaq down the most.
Chipmakers, which have soared over 80% so far this year, were clear underperformers, falling 3.0%. Investors worried that rising interest rates could become a headwind to the rapid AI buildout, which has leaned heavily on debt for funding.
"The market is in a state of nervousness due to high oil prices, as it prepares for earnings season which basically starts next week," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "That's the excuse for what I believe is profit-taking."
"It's a somewhat cautious market, but 'cautious' is not a dirty word," Cardillo added.