Turbulent Tech: Wall Street Woes on AI Fears

Wall Street's main indexes fell on Tuesday, led by a decline in major tech stocks amid concerns over AI disruptions. Notable losses were seen in Nvidia and Microsoft, with further impacts from Chinese AI developments. Meanwhile, big banks provided some relief, and a few stocks experienced significant gains due to corporate actions.

Wall Street's main indexes experienced a turbulent session on Tuesday, with significant drops following a long weekend as major technology stocks led declines.

The market remains on edge as apprehensions grow over artificial intelligence causing upheavals in business models, particularly those in software and tech sectors. Concerns were compounded by China's Alibaba unveiling a cutting-edge AI model, Qwen 3.5, triggering further market anxiety.

While tech stocks struggled, the financial sector showed resilience. However, broader indices such as the S&P 500 and Nasdaq faced considerable downturns. Conversely, some companies saw stock surges due to activist investor movements and takeover negotiations.

(With inputs from agencies.)