Why are big chip stocks under pressure? SK Hynix, AMD, Intel, Nvidia fall up to 6.5%; is the AI rally losing steam?

Big chip stocks are under pressure, with SK Hynix, Micron Technology, Intel, and Advanced Micro Devices (AMD) facing declines of up to 6.5% on September 10, as investors booked profits following recent highs. Escalated tensions in West Asia and a surprising increase in August's Producer Price Index have raised inflation worries ahead of upcoming Federal Reserve meetings. The Producer Price Index rose 0.4% in August from the previous month and 5.4% from a year earlier, with core CPI expected to have risen at a more moderate pace. This week's inflation reports will be closely watched by the Federal Reserve, which is set to meet on September 15-16. The European Central Bank has also responded to rising price pressures by raising its key deposit rate by 25 basis points to 2.5% from 2.25%. Investor attention is focused on the Fed's rate decision, which could depend on what this week's inflation reports reveal.