Sinking AI stocks pull Wall Street further from its record
NEW YORK — Wall Street is pulling further from its all-time high on Tuesday as AI stocks get back to sinking. The S&P 500 fell 0.5 percent and is on track for a third straight modest loss since setting its all-time high on Thursday. The Dow Jones Industrial Average was down 56 points, or 0.1 percent, as of 12:25 p.m. Eastern time, and the Nasdaq composite was 1.1 percent lower. Leading the way…
Wall Street is veering further from its record high on Tuesday as stocks tied to artificial-intelligence technology continue to decline. The S&P 500 slipped 0.5 percent and is on track for a third consecutive modest decline since crossing its all-time high on Thursday. The Dow Jones Industrial Average slipped 56 points, or 0.1 percent, and the Nasdaq composite fell 1.1 percent.
The decline has been driven by concerns that the surge in AI stocks is based on an unsustainable boom. Shares of companies that had been major beneficiaries of the AI craze have been volatile this summer, as investors worry their prices may have been inflated too quickly. Micron Technology, a key supplier of memory chips for data centers, fell 7 percent, while Nvidia and Broadcom, two major chipmakers, each dropped 2.4 percent and 2.9 percent, respectively.
Despite their recent declines, these AI-related stocks remain strong performers, with Micron Technology alone more than tripling in value this year. However, the renewed sell-off highlights the uncertainty surrounding the long-term profitability of AI and the potential for a slowdown in demand for the hardware that powers it.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Sinking AI stocks pull Wall Street further from its record koreatimes.co.kr
