Wall Street Retreats from Record High as AI Stocks Plummet

Wall Street retreated from its all-time high on Tuesday, as AI stocks continued to decline. The S&P 500 dropped 0.6%, marking a third consecutive modest loss since setting its record high on Thursday.

The Dow Jones Industrial Average fell by 89 points (0.2%), while the Nasdaq composite lost 1.2%. Nvidia, Micron Technology, and Broadcom were among the hardest-hit stocks, plummeting by 2.1%, 7.6%, and 3% respectively.

These companies have been major winners in the AI boom, but their prices have skyrocketed to unsustainable levels, sparking concerns that they may fizzle out if AI proves less profitable than expected.

The high interest rates also weighed on investors' willingness to pay for expensive stocks. The 10-year Treasury yield remained above 4.7%, and oil prices surged to $91.24 per barrel, pushing inflation and interest rates higher.