Chip Stocks Slide as SoftBank Exits Nvidia; Paramount Skydance Rises on Restructuring Plans
Semiconductor stocks faced downward pressure Tuesday after SoftBank Group disclosed the sale of its entire Nvidia stake. The Japanese conglomerate emphasized the move wasn't an AI retreat, with proceeds earmarked for OpenAI investments. Nvidia shares fell approximately 3%, dragging the PHLX Semiconductor Index lower.
Paramount Skydance shares surged as the media giant unveiled aggressive cost-cutting measures and capital expenditure plans. The rally contrasted with broader tech sector weakness, where the Nasdaq Composite slipped 0.3% amid mixed market performance.
Investors remained cautious ahead of potential resolution to the prolonged government shutdown. The S&P 500 eked out a 0.2% gain while the Dow Jones Industrial Average climbed 1.2%, highlighting divergent sector performance across major indices.
