AI stock sell-off drags Wall Street lower; S&P 500 drops 1.7% from record highs
By
Stan Choe
Master baker tier. Every paragraph earns its place on the tray.
Summary
A broad sell-off in AI stocks drove Wall Street sharply lower, with the S&P 500 dropping 1.7% and the Nasdaq composite sinking 2.9%. The decline pulled indexes further from recent all-time highs as semiconductor and AI-related companies reversed early gains. Despite lower oil prices providing some benefit, the AI stock rout dominated market movements, though most stocks in the S&P 500 actually rose, indicating a narrow sell-off concentrated in the tech sector.
Key quotes
· 4 pulledAnother sell-off for high-flying artificial-intelligence stocks is dragging Wall Street sharply lower on Tuesday.
The S&P 500 dropped 1.7% after careening between an early gain of 1% and a loss of 2.3%, sinking further from its all-time high set a week ago.
Indexes swung lower as companies selling computer chips, memory and other building blocks of the AI boom broke from early gains to losses.
The drops for AI stocks drowned out the benefit of lower oil prices, and most stocks in the S&P 500 actually rose.
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