U.S. stock markets have faced a significant downturn as major averages struggled, primarily driven by a sharp selloff in chip stocks and concerns over artificial intelligence valuations. The Nasdaq experienced a notable decline, overshadowed by the weak performance of semiconductor stocks, including TSMC and Micron, which has contributed to an overall market slump. Despite some companies reporting solid earnings, such as Netflix and Moderna, these gains were insufficient to offset the losses in the technology sector, leaving indices like the S&P 500 and Dow Jones in the red. Additionally, worries surrounding ongoing tensions in Iran have further unsettled investors, culminating in a particularly challenging week for tech and chipmakers worldwide.