AI Stock Turbulence: Tech Titans Tumble Amid Market Skepticism

U.S. stocks fell due to concerns about high valuations in the technology sector, particularly in AI-related stocks. Notable declines included Advanced Micro Devices and Palantir. Alphabet also saw a drop before its quarterly results. Investors shifted focus to less expensive stocks, with real estate and energy sectors showing gains.

U.S. stocks experienced a downturn on Wednesday, heavily influenced by notable losses in technology companies such as Advanced Micro Devices and Palantir. Investor apprehension about inflated valuations and the potential peak of Wall Street's AI surge contributed to the market's decline.

Alphabet's shares fell by 2.3% as anticipation built for its post-market quarterly results, which would reveal the impact of the tech giant's extensive AI investments on its earnings growth. Advanced Micro Devices saw a significant 16% drop after its revenue forecast disappointed investors, highlighting competitive challenges against AI leader Nvidia.

The S&P 500 saw a 0.64% decline to 6,873.72 points, while the Nasdaq decreased by 1.74% to 22,851.82 points, contrasting with the Dow Jones Industrial Average, which rose slightly by 0.18%. Despite a general decline, sectors such as real estate and energy observed gains, counterbalancing broader market fluctuations.

(With inputs from agencies.)