Wall Street opened lower across the board on Thursday, with the Nasdaq Composite dropping 0.9% as investors increasingly positioned for a potential interest rate increase next month. The majority of high-profile technology names traded in negative territory, reflecting growing caution in the market.

Among the hardest hit were semiconductor stocks, with Intel (INTC.US) and SK hynix (SKHY.US) both sliding more than 4%. Micron Technology (MU.US) followed closely with a decline exceeding 3%, while NVIDIA (NVDA.US) and Advanced Micro Devices (AMD.US) each fell over 2%. Tesla Motors (TSLA.US) and Taiwan Semiconductor Manufacturing (TSM.US) also retreated, losing more than 1% apiece during the session.

The selling pressure came after the release of U.S. Producer Price Index data for August, which showed a year-over-year gain of 5.4%—slightly above the 5.3% that analysts had anticipated. On a monthly basis, the index rose 0.4%, matching consensus forecasts. Following the report, traders moved to fully price in a rate hike at the Federal Reserve's October meeting.

Adding to the rate-sensitive sentiment, several Fed officials have hinted that the decision at the September 15-16 policy meeting could hinge on signals revealed in this week's economic reports. Fed Chair Warsh, during a speech last month, underscored that policymakers still have "work to do" unless they become confident that underlying inflationary trends are improving significantly.