AI Stocks Weigh on Wall Street as Market Retreats from Record

Wall Street slipped further away from its all-time high on Tuesday as AI stocks continued to decline. The S&P 500 fell 0.5% and is on track for a third consecutive modest loss since setting its record last Thursday.

The Dow Jones Industrial Average was down 33 points, or 0.1%, at 10:15 a.m. Eastern time, while the Nasdaq composite dropped 1.3%. Among the leading AI stocks, Micron Technology led the decline with a 5.9% drop, followed by Nvidia and Broadcom, which fell 2.5% and 3.7% respectively.

The recent downturn in AI stocks can be attributed to concerns that their prices shot too high during the tech boom and may not live up to expectations. This has been exacerbated by worries that the strong demand for memory, processors, and other data center components may fizzle out if AI proves less profitable than promised.