Wall Street Pulls Back from Record High as AI Stocks Plunge

Wall Street continued its decline on Tuesday as AI stocks plummeted further, pulling the market away from its all-time high. The S&P 500 fell by 0.7% for the third consecutive day since setting a new record last Thursday.

The Dow Jones Industrial Average dipped 116 points, or 0.2%, while the Nasdaq composite sank 1.3%. Companies that have been leaders in artificial-intelligence technology, such as Micron Technology, Nvidia, and Broadcom, led the decline. These stocks have seen significant gains this year, with Micron more than tripling its value.

The high interest rates are making investors less willing to pay high prices for stocks, especially those considered too expensive. Yields on 10-year US Treasuries remained above 4.7%, while the yield on 30-year Treasuries was near its highest level since 2007.