KLA (KLAC) news that moved the stock

What happened

Lam Research (LRCX) tumbled about 11.8% Thursday — far beyond Wednesday's ~5% after-hours dip — after analysts trimmed price targets following the company's warning that near-term supply constraints could push some December-quarter shipments into March 2027, with guidance for adjusted fiscal Q2 earnings slightly weaker than expected. The crash ignited a broad semiconductor selloff: the PHLX Semiconductor Index dropped 6.7%, with KLA and GlobalFoundries down more than 9%, and Marvell, Intel and AMD each falling more than 8%. Motley Fool noted midday that Lam's supply-chain warning had become the catalyst for the day's AI-stock jitters, and the semiconductor rout fed the Nasdaq's worst session since June (-2.6%), its lowest close in over a month, with the S&P 500 falling 1.2% and both dipping below their 50-day moving averages.

What happened

U.S. equities rebounded Monday after the Nasdaq's worst week since June, with the Nasdaq Composite rising about 1.3% and the S&P 500 up 0.5% while the Dow was flat. Chipmakers and AI-infrastructure stocks led the recovery: the iShares Semiconductor ETF (SOXX) rose more than 2%, with SanDisk and Western Digital up over 6%, Marvell up 5%, and Intel, Lam Research and Micron up more than 4%. The Magnificent Seven — except Meta — powered the advance: Amazon surged 4.8%, adding 71 points to the Dow, while Microsoft, Nvidia and Alphabet each contributed roughly 24 points; Tesla rose 3-4%. Meta lagged, falling about 0.9%. The bounce came as Dow and S&P futures had climbed earlier in the day on fading expectations of an October Fed rate hike (odds now ~13-15%) and as investors positioned ahead of a pivotal earnings week.