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Wall Street continued to decline on Tuesday, moving further away from its all-time high as AI stocks experienced further losses. The S&P 500 fell 0.7% for a third consecutive loss since reaching its peak on Thursday. The Dow Jones Industrial Average decreased by 116 points, or 0.2%, while the Nasdaq composite dropped 1.3%.
Micron Technology saw a significant drop of 7%, contributing heavily to the S&P 500's decline. Other chip companies also struggled, with Nvidia down 2.3% and Broadcom down 3.2%. Despite these recent losses, these stocks have been strong performers this year, with Micron's value more than tripling.
Meta Platforms declined by 4.4% amid opening statements in a crucial federal trial in California concerning damages for social media impacts on children. Klarna's stock plummeted 22.8%, even after reporting better-than-expected quarterly results, largely due to lowered financial forecasts for 2026, especially concerning its largest market, Germany.
In South Korea, the Kospi index fell 1.5%, a modest change compared to previous days’ swings of at least 2.4%. The yield on the 10-year U.S. Treasury decreased slightly to 4.70%, remaining above its prior level of 3.97% before the Iran conflict, while the 30-year Treasury yield also fell but stayed near its highest since 2007.
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