AI Stock Decline Pulls Wall Street Further from Record

Wall Street's recent gains have been halted as AI stocks continue to falter. The S&P 500 fell by 0.7% for a third consecutive day, while the Dow Jones Industrial Average dipped 0.2%. The Nasdaq composite sank 1.3%, with leading AI stocks Micron Technology, Nvidia, and Broadcom taking heavy losses.

Micron dropped 7% after being one of the heaviest weights on the S&P 500. Chip companies Nvidia and Broadcom fell 2.3% and 3.2%, respectively. Despite their recent swings, these AI stocks remain big winners this year, with Micron more than tripling in value.

The high yields in bond markets worldwide have made investors less willing to pay high prices for expensive stocks. The yield on the 10-year U.S. Treasury edged down to 4.70% but remains well above its pre-war level of 3.97%. The 30-year Treasury yield also ticked lower, still near its highest level since 2007.