Wall Street Turns Attention Away from AI Stocks Amid Market Swings

Wall Street's focus shifted away from AI stocks and towards other areas on Tuesday, despite a modest gain in the S&P 500. The Dow Jones Industrial Average rose by 537 points or 1%, while the Nasdaq composite slipped 0.2% after briefly dropping below its record set last month.

Coca-Cola's stock climbed 5% after its revenue increased 7% despite CEO Henrique Braun calling it a 'dynamic consumer landscape.' Sherwin-Williams rallied 8.3%, and Illinois Tool Works rose 3.6% after both reported stronger earnings for the latest quarter than analysts expected.

However, chipmakers continued to decline, with Micron Technology's stock falling 8.9% due to concerns about sustainability of growth in AI technology. Advanced Micro Devices dropped 8.1%, and Applied Materials fell 7.8%. The losses for these stocks were even more significant in other markets worldwide.

Oil prices also eased further from their two-month high, with Brent crude falling 4.4% to $82.08 per barrel. This decline was attributed to hopes of a potential agreement between the US and Iran allowing oil tankers to use the Strait of Hormuz.