Sinking AI stocks pull Wall Street further from its record

Wall Street pulled further from its record high on Tuesday as AI stocks sank, with the S&P 500 falling 0.5 percent for a third straight loss since its all-time high on Thursday. Micron Technology dropped 7 percent, Nvidia fell 2.4 percent, and Broadcom sank 2.9 percent, leading declines among AI-related companies amid worries that their prices rose too high and demand for memory and processors may fizzle if AI proves less profitable than promised.

NEW YORK — Wall Street is pulling further from its all-time high on Tuesday as AI stocks get back to sinking. The S&P 500 fell 0.5 percent and is on track for a third straight modest loss since setting its all-time high on Thursday. The Dow Jones Industrial Average was down 56 points, or 0.1 percent, as of 12:25 p.m. Eastern time, and the Nasdaq composite was 1.1 percent lower. Leading the way lower were stocks that have been big winners in the boom around artificial-intelligence technology. They’ve been veering up and down this summer on worries that their prices shot too high in the AI frenzy and that the strong demand for memory, processors and other building blocks of data centers may fizzle out if AI proves less profitable than promised. Micron Technology dropped 7 percent, and the seller of computer memory was one of the heaviest weights on the S&P 500. So were chip companies Nvidia, which fell 2.4 percent, and Broadcom, which sank 2.9 percent. Even with their recent swings, such stocks remain big winners, and Micron has more than tripled this year. But stocks that critics call