NEW YORK (AP) — Artificial-intelligence stocks are yo-yoing Wednesday, as the former superstars of Wall Street continue to face scrutiny for their success, and they're dragging the U.S. market with them.
The S&P 500 sank 0.8% after bouncing between a modest gain and a loss of 1.1%, and it's heading toward its first back-to-back drop in three weeks. The Dow Jones Industrial Average was down 525 points, or 1%, as of 11:30 a.m. Eastern time, and the Nasdaq composite was 1.1% lower.
Wall Street has been shaky since last week, when AI stocks went from roaring to records to suddenly turning lower. Among the worries is that their prices have simply shot too high, too fast because of AI mania. The question now is whether the break lower has cleared out excessive optimism that may have built into their stock prices, or if it's just the start of a longer downturn.
