US Stock Market Move | Memory sector falls broadly; SK Hynix (SKHY.US) drops over 5%.

On Friday, the memory sector fell broadly, with SK Hynix (SKHY.US) dropping over 5%, SanDisk (SNDK.US), Western Digital Corporation (WDC.US), and Seagate Technology Holdings PLC (STX.US) falling more than 4%, and Micron Technology, Inc. (MU.US) declining over 3%. The core narrative in the market this week was a marked cooling of AI-related trades. As concerns over the cost of AI infrastructure buildout continued to heat up, capital flowed out of the technology sector, leaving chip stocks particularly vulnerable. Regarding the AI sector, Florian Ielpo, head of macro at Lombard Odier Investment Managers, pointed to the key question: whether AI investments can generate attractive returns at current financing cost levels. This doubt is precisely the core logic behind the pressure on tech stock valuations this week.