# Tech Stocks Fall as Hot PPI Data and AI Spending Concerns Drag Down Nasdaq

- URL: https://stocks.freetheai.org/news/tech-stocks-fall-as-hot-ppi-data-and-ai-spending-concerns-drag-down-nasdaq-8d6dbe
- Published: 2026-10-15T13:40:30Z
- Category: markets; sentiment: bearish; impact: high
- Symbols: [NASDAQ:IXIC](https://stocks.freetheai.org/symbols/NASDAQ-IXIC), [NASDAQ:SOX](https://stocks.freetheai.org/symbols/NASDAQ-SOX)
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U.S. technology equities extended their losses on Thursday, pulling down the Nasdaq Composite (NASDAQ:IXIC) and the broader semiconductor sector. A sharp drop in chipmakers and artificial intelligence hardware companies drove the decline, even as non-technology shares provided partial support to the broader market. Retail giant Walmart (WMT) and drugmaker Merck (MRK) logged gains, helping the Dow Jones Industrial Average rise 272 points despite tech weakness.

The market pressure stems from a combination of persistent inflation data and growing skepticism around high AI investment costs. September U.S. producer prices increased 1.3% from the previous month and 6.3% from a year earlier, exceeding economist estimates and marking the largest annual rise since 2022. Coming on the heels of elevated consumer price figures, the data spiked fears that the Federal Reserve could hike interest rates again this year. Higher borrowing costs threaten to increase financing expenses for capital-intensive AI expansion, where bond yields for companies like Oracle (ORCL) and CoreWeave recently hit record highs.

Investors are now looking ahead to upcoming Federal Reserve communications, including remarks scheduled by Federal Reserve Chair Kevin Warsh at the International Monetary Fund meeting. Market participants will also focus on corporate earnings as third-quarter results unfold, testing whether strong profit growth can support market valuations against rising debt costs and economic uncertainty.

## Key points

- The U.S. Producer Price Index rose 1.3% in September and 6.3% year-over-year, beating expectations and driving fears of higher interest rates.
- The Philadelphia Semiconductor Index extended its losing streak to six sessions, wiping out about $1.64 trillion in market value over that period.
- Chipmakers declined broadly, with Advanced Micro Devices falling 6%, Micron Technology down 5.7%, and Nvidia losing 3.1%.
- Taiwan Semiconductor Manufacturing Company reported record profits for a sixth straight quarter but warned of macroeconomic uncertainty in 2027.
- Gains in non-tech stocks provided balance, as Walmart shares rose 4% and Merck climbed over 2%.

## Questions and answers

### Why did the Nasdaq Composite drop today?

The Nasdaq Composite fell due to stronger-than-expected producer inflation data, which fueled concerns over potential Federal Reserve interest rate hikes, alongside a continuing sell-off in technology and artificial intelligence stocks.

### How much did September producer prices increase?

The U.S. Producer Price Index increased 1.3% month-over-month in September and 6.3% compared to the prior year, exceeding economists' expectations of 0.6% monthly and 5.5% annual growth.

### Which tech stocks led the market sell-off?

Declines were led by chipmakers and AI infrastructure firms. SanDisk fell 8.7%, CoreWeave dropped around 7%, Advanced Micro Devices dropped 6%, Micron Technology lost 5.7%, and Nvidia declined 3.1%.