Nasdaq drops second day as semiconductor stocks slide on supply concerns

19 May 2026 · Source balance: Centre

The Nasdaq dropped for a second consecutive day, falling zero point five one percent to close at twenty-six thousand ninety, while the broader S&P five hundred slipped zero point zero seven percent. The decline was led by weakness in semiconductor stocks, particularly memory chip makers. Micron Technology fell around six percent, dragged lower by broader sector losses. Seagate's CEO sparked the selloff by warning at a JPMorgan conference that building new chip factories would take too long, fueling investor concerns the industry cannot meet surging AI-related demand. Additional pressure came from rising Treasury yields, with the ten-year bond reaching its highest level since February twenty twenty-five, reflecting inflation worries. Technical factors also weighed on the market, including profit-taking after the Nasdaq had hit record highs last week. Analysts say the pullback reflects a mix of supply chain uncertainties and geopolitical risks, though underlying demand for AI infrastructure remains strong.