Wall Street Mixed as AI Stocks Slide and Oil Prices Ease/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street traded mixed Thursday as another selloff in artificial intelligence-related stocks overshadowed strong corporate earnings and gains across much of the broader market. Nvidia and other chipmakers led the decline, while oil prices eased after briefly climbing on Middle East tensions. Investors also weighed mixed U.S. economic data and global market volatility.

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AI Stocks Wall Street Quick Looks

• AI-related stocks led another market decline.
• Nvidia fell 2.5%, weighing heavily on the S&P 500.
• The S&P 500 slipped 0.2%, while the Dow gained.
• Nasdaq fell 0.7% amid chipmaker losses.
• Abbott and UnitedHealth posted strong earnings gains.
• Taiwan Semiconductor beat earnings expectations.
• AI memory stocks extended recent declines.
• Oil prices eased after briefly topping $86 per barrel.
• Treasury yields remained elevated amid inflation concerns.
• Global markets were mixed, with Hong Kong outperforming.
• Investors monitored strong labor and manufacturing data.
• Interest rate concerns continued to pressure markets.

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AI Stock Selloff Weighs on Wall Street Despite Strong Earnings

Technology Stocks Lead Market Lower

Wall Street traded unevenly Thursday as another wave of selling in artificial intelligence-related companies offset encouraging corporate earnings and strength across much of the broader market.

The S&P 500 slipped 0.2%, retreating after finishing just shy of a record high during the previous session.

The Dow Jones Industrial Average gained roughly 0.2%, while the technology-heavy Nasdaq Composite dropped 0.7% as investors continued reducing exposure to many of this year’s biggest AI winners.

Although most stocks advanced, losses among the market’s largest technology companies had an outsized impact on major indexes.

Nvidia Again Leads Decline

Nvidia remained the biggest drag on Wall Street.

Shares of the semiconductor giant fell 2.5%, extending a recent pullback after an extraordinary rally that made it the most valuable publicly traded company in the world.

Because of Nvidia’s enormous market value, even modest price movements carry significant influence over the S&P 500 and Nasdaq.

Other major artificial intelligence beneficiaries also posted sharp losses.

Micron Technology declined 5.7%, trimming—but not eliminating—its remarkable gains for the year.

Sandisk fell 10.6%, though the stock remains up roughly 500% in 2026.

Western Digital dropped 9% but continues to hold gains of approximately 170% this year.

Investors Reassess AI Valuations

The recent weakness reflects growing concern that AI-related shares may have risen too far, too quickly.

Investors increasingly question whether demand for advanced processors, memory chips and data center infrastructure can continue expanding at its recent pace.

Some analysts also worry that artificial intelligence may take longer than expected to generate the profits and productivity improvements that have fueled the sector’s record-breaking rally.

The selloff represents a shift toward more cautious valuations rather than a rejection of AI’s long-term potential.

Strong Earnings Support Broader Market

Outside the technology sector, many companies delivered encouraging financial results.

Healthcare company Abbott Laboratories surged 11.1% after reporting stronger-than-expected quarterly earnings and raising its full-year profit outlook.

UnitedHealth Group also exceeded Wall Street expectations.

Its shares climbed 3.5% following better-than-anticipated quarterly results.

Those gains helped offset some of the pressure created by declining technology stocks.

The majority of companies trading on U.S. exchanges finished the session higher despite weakness among semiconductor manufacturers.

Taiwan Semiconductor Beats Expectations

Taiwan Semiconductor Manufacturing Co. reported quarterly earnings that surpassed analyst forecasts.

Shares listed in Taiwan rose 1.2% following the announcement.

However, the company’s U.S.-listed shares fell 2.2% as broader selling continued across semiconductor stocks.

Investors appeared more focused on valuation concerns than on individual earnings performance.

Global Markets Feel AI Pressure

Technology-driven weakness spread beyond the United States.

South Korea’s Kospi Index dropped 6.4%, largely because of declines in Samsung Electronics and SK Hynix, two companies heavily tied to AI memory demand.

The index has experienced significant swings in recent weeks, including gains exceeding 6% and multiple sharp declines.

The Bank of Korea also raised interest rates for the first time since 2023.

Higher borrowing costs generally reduce corporate investment and place additional pressure on stock valuations, particularly among high-growth technology companies.

Elsewhere in Asia:

• Shanghai declined 1.8%.
• Tokyo fell 2.8%.
• Hong Kong gained 1.3%.

Hong Kong outperformed after Alibaba advanced on news that Chinese regulators approved Apple Intelligence for use in China.

Alibaba said its Qwen artificial intelligence model will power portions of Apple’s AI services in the country.

Oil Prices Ease After Early Spike

Energy markets remained volatile as investors continued monitoring the conflict involving Iran.

Brent crude briefly traded above $86 per barrel before giving back gains later in the day.

Prices settled near $84.75 per barrel, down slightly from the previous session.

Oil has climbed to its highest levels in about a month amid concerns that military tensions could disrupt shipping through the Strait of Hormuz, one of the world’s most important oil transportation routes.

Any prolonged disruption could tighten global energy supplies and increase inflationary pressures.

Treasury Yields Continue Rising

Bond markets also reflected investor caution.

The yield on the benchmark 10-year U.S. Treasury note climbed to 4.57%, continuing its gradual increase since the conflict with Iran began.

Higher Treasury yields often signal expectations that inflation may remain elevated or that central banks could keep interest rates higher for longer.

Rising yields also tend to reduce the appeal of high-growth technology stocks because future earnings become less valuable when discounted at higher interest rates.

Economic Reports Offer Mixed Signals

Fresh U.S. economic data painted a mixed picture.

Retail sales increased less than economists expected, suggesting consumers have become more cautious.

However, excluding gasoline purchases, consumer spending remained relatively resilient.

Additional reports showed:

• Initial unemployment claims declined, indicating continued labor market strength.
• Manufacturing activity in the mid-Atlantic region exceeded economist expectations.

Together, the reports suggest the U.S. economy continues to expand despite higher interest rates and geopolitical uncertainty.

Investors Watch Earnings and Central Banks

Wall Street remains focused on several competing forces.

Strong corporate earnings continue supporting many sectors of the market.

At the same time, elevated interest rates, expensive stock valuations, rising Treasury yields and geopolitical uncertainty continue weighing on investor sentiment.

The artificial intelligence sector, which has driven much of the market’s gains over the past two years, now faces increased scrutiny as investors evaluate whether future earnings growth can justify record-high valuations.

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