LONDON (AFP)
The increasing prospect of a US rate reduction weighed on the dollar, helping push gold, a haven investment that is priced in the currency, to another record peak on Wednesday.
The tech-heavy Nasdaq slumped by 2.3 percent two hours into the session, and the broad S&P 500 dropped 1.2 percent.
Shares in artificial intelligence chipmaker Nvidia fell 6.0 percent, while those in ASML, which manufactures the equipment to make computer chips, tumbled 11 percent.
Tech stocks, in particular Nvidia, have been on a tear in recent months over the boom in the development of artificial intelligence applications, helping drive Wall Street to new records.
The Dow and S&P 500 ended at fresh records on Tuesday.
In Europe, London equities held steady, closing 0.3 percent in the green despite stronger-than-expected UK inflation data dousing hopes of a British interest rate cut any time soon.
"The Bank of England requires a higher level of certainty in order to actually lower rates," said Patrick Munnelly of brokers Tickmill.
Elsewhere in Europe, Paris and Frankfurt closed just down.
The increasing prospect of a US rate reduction also weighed on the dollar, helping gold to another record peak.
UK inflation holding steady at 2.0 percent in June from May, stronger than forecast, helped push the British pound close to a one-year high above $1.30 as investors also bet that the Federal Reserve was set to start reducing American borrowing costs soon.
Gold prices spiked to $2,482.42 per ounce, while the yen also rallied.