NEW YORK: The Nasdaq and the S&P 500 closed at more than one-week lows on Tuesday, dragged down by sharp losses in semiconductor stocks as investors scrutinised growing debt-funded AI spending and braced for a more hawkish US Federal Reserve.

The Dow ended slightly lower.

The Philadelphia SE Semiconductor index tumbled 7.9% and the S&P 500 information technology sector index slipped 3.7%.