By Tharuniyaa Lakshmi and Purvi Agarwal Oct 14 (Reuters) - The S&P 500 and the Nasdaq tumbled on Wednesday as banks slid after quarterly results and hot inflation data boosted bets of interest rate hikes,

As a key corner of the artificial intelligence trade takes a beating on Wednesday, traders are betting it could get even worse.

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Anticipation is building for Anthropic’s investor day, as Wall Street grows less patient with heavy AI spending.

A number of stocks fell in the afternoon session after major indices pulled back and retail equities faced pressure as the Bureau of Labor Statistics reported a hotter-than-expected September inflation print,

The selloff in Asia wiped an estimated $5.5 billion off SoftBank founder Masayoshi Son’s fortune, while Nvidia, Micron and other major U.S. chip stocks fell in premarket trading.

Even with Wednesday’s slump, Dell shares have roughly quadrupled in value since the start of the year, while HPE and NetApp have more than doubled. All three rank among the S&P 500’s top performers this year.

Following months of relative calm, stocks took a beating across the tech sector, with chip makers, upstart cloud companies and AI hyperscalers all coming under pressure. By the end of session, the tech-heavy Nasdaq composite and the S&P 500 had both logged their biggest one-day declines since July.

South Korean stocks tumbled in particular, as reports of a breakthrough by a Chinese chip rival heightened concerns about competition.

Stock futures were mostly higher Wednesday ahead of the Consumer Price Index data for September, although shares of memory-chip makers continued to pull back amid Chinese competition fears.

Market breadth has deteriorated sharply this year. Just a few S&P 500 companies have been pushing the index to fresh all-time highs.

CoreWeave’s rising bond yields are rattling AI infrastructure stocks, including GE Vernova, Vertiv and Eaton.