Finance

The tech-heavy Nasdaq Composite and information technology sectors led the market lower as semiconductor shares pulled back. High-profile chip equipment manufacturers like Applied Materials and Broadcom faced significant drops despite reporting solid quarterly numbers, suggesting a bout of profit-taking after the recent artificial intelligence rally.

Shares of the social media forum Reddit surged up to 14% following the announcement that it will be added to the broad-market S&P 500 index next week. The inclusion is expected to spark automated buying from index-tracking mutual funds and exchange-traded funds that mimic the benchmark.

Ongoing hostilities in the Middle East and supply chain disruptions surrounding the Strait of Hormuz continue to impact commodities. Brent crude futures moved higher toward $87 a barrel, while gold futures experienced gains, trading near $4,450 per ounce as a hedge against persistent economic risks.