Wall Street closed with losses on Tuesday, driven by a selloff in semiconductor stocks. Concerns are growing regarding the increasing debt levels associated with artificial intelligence investment and expansion plans. Investors are carefully evaluating the financial implications of this rapid AI development. Simultaneously, market participants are anticipating a potentially more aggressive stance from the Federal Reserve regarding interest rate policy. This combination of factors – AI funding worries and hawkish Fed expectations – contributed to the downturn. The semiconductor industry, crucial for AI development, experienced significant selling pressure as a result.