NEW YORK (AP) — Another sell-off for artificial-intelligence stocks is dragging the U.S. market sharply lower on Wednesday as Wall Street's former superstars continue to face heavy scrutiny for their success.
The S&P 500 dropped 1.4% after giving up a brief modest gain in the morning, and it's heading toward its first back-to-back drop in three weeks. The Dow Jones Industrial Average was down 772 points, or 1.5%, with an hour remaining in trading, and the Nasdaq composite was 1.8% 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.
