Wall Street’s technology-heavy Nasdaq and the benchmark S&P 500 traded lower on Tuesday as weakness in semiconductor stocks prompted investors to reassess the strength of the artificial intelligence-driven market rally.

The decline followed a broader sell-off across Asian equities, led by a sharp 4.9% fall in South Korea’s benchmark index after chipmaker Samsung Electronics reported strong quarterly profits but failed to ease growing concerns about the long-term sustainability of the AI-fuelled boom.

At the opening bell, the Dow Jones Industrial Average rose 48.1 points, or 0.09%, to 53104.06. The S&P 500 fell 20.8 points, or 0.28%, to 7516.63​, while the Nasdaq Composite dropped 161.0 points, or 0.62%, to 25960.13.

Investor sentiment was also influenced by fresh US economic data released on Tuesday morning, which showed the country’s trade deficit widened in May to its largest level in more than a year. The figures were largely in line with market expectations and did little to alter the broader economic outlook.

“Some people blame it on profit-taking, other people are saying that these numbers were underwhelming and creating a renewed angst on those huge AI names,” said Art Hogan of B. Riley Wealth Management, according to AFP.

“It is taking a bit of a bite out of the chips here (in the US) this morning, which have been on a real rollercoaster,” he said.

Market participants are now turning their attention to the minutes from the Federal Reserve’s latest policy meeting, scheduled for release on Wednesday. The document is expected to provide further insight into policymakers’ views on the path of interest rates following the central bank’s first meeting under Chair Kevin Warsh.

Investors will closely analyse the minutes for clues on the Fed’s assessment of inflation, economic growth and the timing of any future monetary policy adjustments.