AI Stocks Drag Wall Street Lower Amid High Interest Rates

Wall Street stocks dropped on Tuesday as artificial-intelligence (AI) stocks led the way lower.

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

AI stocks like Micron Technology dropped 7%, Nvidia fell 2.3%, and Broadcom sank 3.2%. These stocks have been big winners in the boom around AI technology, but their prices shot too high in the AI frenzy.

The high interest rates are making investors less willing to pay high prices for stocks and other investments, particularly those seen as the most expensive.