The stock market closed lower on Tuesday, with the S&P 500, Nasdaq Composite, and Dow Jones all posting declines. The S&P 500 fell 107.33 points (-1.44%), the Nasdaq Composite dropped 579.56 points (-2.21%), and the Dow Jones declined 45.87 points (-0.09%). The broad-based selloff was driven by a global chip sell-off, which spurred doubts about the artificial intelligence (AI) sector. The Nasdaq, which is heavily weighted towards tech stocks, was particularly hard hit, with a 2.21% decline. The S&P 500 and Dow Jones also fell, but to a lesser extent, reflecting a more mixed tone across sectors. The selloff in the tech sector was exacerbated by concerns about AI spending and the performance of companies like Micron, which saw its stock fall significantly. The global tech sell-off also impacted other markets, with the South Korean market plunging 10% due to the AI sell-off.

The overall tone of the market session was risk-off, with investors reacting negatively to the global chip sell-off and the associated uncertainty in the AI sector. The selloff was broad-based, affecting both growth and value stocks, but the tech sector was the most impacted. The headlines highlighted the concerns about AI spending and the performance of chip stocks, which are crucial for the tech sector. The market was also influenced by concerns about inflation and the Federal Reserve's monetary policy, with traders eyeing the upcoming PCE inflation data. The Dow Jones, which is more sensitive to changes in the broader economy, saw a