US stocks fall as chip index loses 6.7%

US stocks fell sharply on October 22, led by semiconductor shares, while investors bought US government bonds. The Nasdaq and Philadelphia semiconductor index suffered their biggest daily declines since June, according to the Guardian’s October 23 market report.

The session brought together pressures that had unsettled markets in recent weeks, Deutsche Bank’s Jim Reid said. The Guardian linked renewed selling in artificial intelligence (AI) stocks to investors’ growing doubts about whether AI-fuelled returns could last.

Treasuries—US government bonds—rallied as stocks fell. The 10-year Treasury yield dropped 16.6 basis points to 4.95%, its largest daily fall since August 2024. A basis point is one-hundredth of a percentage point; bond yields fall when prices rise. Reid described the buying as a flight toward government debt during market turmoil.

Analysis

Analysts point to technology, debt and oil concerns

Reid cited mounting French debt stress alongside AI concerns. The gap between French and German 10-year government bond yields widened by 14.8 basis points, its biggest daily increase since March 2020. He also attributed rising oil prices to geopolitical fears: Brent crude gained 4% to $113.17 a barrel, a five-month high. Together, he said, these pressures drove investors away from riskier assets.

Swissquote analyst Ipek Ozkardeskaya argued that falls of more than 50% from memory-chip makers’ share-price peaks suggested their earlier surge had been a bubble that had burst. She also said those companies continued to benefit from strong AI-related demand.

The next scheduled company results include Microsoft, Google, Amazon and Sandisk. All four are due to report next week, giving investors fresh financial figures to assess after the sell-off.