Wall Street ends mixed as AI stocks reverse gains, S&P 500 falls 0.3%
US stocks ended mixed on Tuesday as a sharp reversal in AI-related shares erased early gains, dragging the S&P 500 and Nasdaq lower despite a dip in oil prices.
Wall Street ended mixed on Tuesday after a volatile session that saw high-flying artificial-intelligence stocks suddenly reverse course, dragging the broader market lower. The S&P 500 fell 0.3 percent after swinging between a gain of 1 percent and a loss of 2.3 percent during the day. The Dow Jones Industrial Average managed a slight gain of 0.2 percent, while the Nasdaq composite sank 1 percent.
The reversal was driven by a sharp downturn in companies that supply computer chips, memory, and other building blocks of the AI boom. These stocks had opened strongly but gave up all gains and more by midday, triggering a broad selloff in technology shares. The losses in AI names were severe enough to outweigh the positive effect of falling oil prices, which typically supports equities by reducing input costs. In fact, most stocks in the S&P 500 actually rose on the day, but the heavy weighting of tech meant the index still finished in the red. Treasury yields edged lower as investors sought safety in bonds.
Traders will now watch for any follow-through selling in AI stocks, which have been the primary driver of market gains this year. The sharp intraday reversal suggests profit-taking after an extended rally, and further volatility could spill over into other sectors. On the macro front, the next key data point is the consumer price index release later this week, which will influence expectations for Federal Reserve policy. For real-time pricing on energy commodities, check NowPrice's fuel page to track how oil prices are reacting to the broader market moves.