AI Stocks Sink Wall Street's Recent Gains

Wall Street's recent gains took a hit on Tuesday as AI stocks continued to slump. The S&P 500 fell 0.7% for its third straight modest loss since setting an all-time high last Thursday.

The Dow Jones Industrial Average dipped 0.2%, and the Nasdaq composite sank 1.3%. Micron Technology led the decline, dropping 7%, as chip companies Nvidia and Broadcom also suffered losses of 2.3% and 3.2% respectively.

Despite their recent downturns, AI stocks remain big winners this year, with Micron more than tripling in value. However, high interest rates have investors reevaluating the prices of these stocks, particularly those seen as overvalued.

The yields on 10-year and 30-year U.S. Treasuries remained near their highest levels since 2007 and 2007 respectively, adding to the pressure on AI stocks. The report also noted that oil prices have been a major contributor to the increase in yields, with Brent crude currently trading at $91.02 per barrel.