Sinking AI Stocks Pull Wall Street Down

An AP News article

Wall Street pulled further from its all-time high on Tuesday as AI stocks got back to sinking.

The S&P 500 fell 0.7% for a third straight modest loss since setting its all-time high on Thursday. The Dow Jones Industrial Average dipped 116 points, or 0.2%, and the Nasdaq composite sank 1.3%.

Leading the way lower were stocks that have been big winners in the boom around artificial-intelligence technology. They’ve been veering up and down this summer on worries that their prices shot too high in the AI frenzy and that the strong demand for memory, processors and other building blocks of data centers may fizzle out if AI proves less profitable than promised.

Micron Technology dropped 7%, and the seller of computer memory was one of the heaviest weights on the S&P 500. So were chip companies Nvidia, which fell 2.3%, and Broadcom, which sank 3.2%.

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