On Friday, the Nasdaq experienced a decline of over 1%, leading to a drop in Wall Street’s main indexes. This decrease was primarily due to concerns over consumer demand impacting chipmakers, as well as rising Treasury yields affecting major growth stocks.

Several chip equipment makers, including Applied Materials (NASDAQ: AMAT), Lam Research (NASDAQ: LRCX) , and KLA Corp, saw their shares fall around 4% each after it was reported that TSMC had requested a delay in deliveries from its major vendors. This news also had a ripple effect on other chipmakers such as Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), Broadcom (NASDAQ: AVGO), and Micron Technology (NASDAQ: MU), causing their stocks to decline between 1.6% and 3.7%. Consequently, the Philadelphia Semiconductor index hit a three-week low.

Adding further worry to the chip industry was the United Auto Workers’ union launching strikes simultaneously at General Motors (NYSE: GM), Ford (NYSE: F), and Stellantis (NYSE: STLA). Despite this, shares of the three automakers actually rose around 1% each.

The sentiment was further dampened by the climb in U.S. Treasury yields, which had a negative impact on growth stocks such as Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Microsoft (NASDAQ: MSFT), leading to declines between 1.8% and 2.7%. Brian Klimke, the chief market strategist at Cetera Investment Management, expressed concern about the Federal Reserve’s rate hikes and suggested that they may not give the markets what they want, ruling out the possibility of rate cuts.

Traders’ predictions for the Federal Reserve’s policy meeting in September indicated a 97% chance of rates remaining steady, while the odds for a pause in November stood at 67%. Meanwhile, Adobe’s (NASDAQ: ADBE) stock dropped 4.1% to a two-week low following its announcement of a commercial paper program after its third-quarter results.

The information technology and consumer discretionary stocks were among the biggest losers in the S&P 500 sector, both declining by over 1%. However, SoftBank’s Arm Holdings saw a gain of 1.7% after a successful Nasdaq debut, boosting hopes for a turnaround in the IPO market. Arm’s strong performance prompted Instacart to increase the proposed price range for its IPO, aiming for a fully diluted valuation of up to $10 billion.

Neumora Therapeutics, which is backed by Amgen and SoftBank, had a lackluster debut, trading at $16.50 per share, lower than its IPO price of $17 per share.

The expiration of quarterly derivatives contracts tied to stocks, index options, and futures, often referred to as “triple witching,” is expected to result in market volatility later in the day.

As of 12:25 p.m. ET, the Dow Jones Industrial Average was down 0.50%, the S&P 500 was down 0.80%, and the Nasdaq Composite was down 1.24%.

Paramount Global and Warner Bros Discovery (NASDAQ: WBD) saw gains of 2.4% and 1.7%, respectively, as entrepreneur Byron Allen made a $10 billion bid for Walt Disney (NYSE: DIS)’s ABC TV network. Disney’s shares also increased by 1%.

Overall, declining issues outnumbered advancers on both the NYSE and the Nasdaq.