Wall Street Retreats from Record as AI Stocks Continue Slide

Wall Street took another step back from its record high on Tuesday as AI stocks continued their downward trend. The S&P 500 fell by 0.7%, marking a third straight modest loss since it set an all-time high on Thursday. The Dow Jones Industrial Average dipped by 116 points, or 0.2%, and the Nasdaq composite sank by 1.3%.

Leading the way lower were stocks that have been big winners in the AI boom. Micron Technology dropped by 7%, weighed heavily on the S&P 500 along with chip companies Nvidia, which fell by 2.3%, and Broadcom, which sank by 3.2%. Despite their recent swings, these stocks remain big winners, with Micron more than tripling this year.

The high interest rates in bond markets worldwide are also contributing to the decline of AI stocks. The yield on the 10-year U.S. Treasury edged down to 4.70% from 4.72% late Monday but remains well above its 3.97% level from just before the war with Iran began.