AI stocks keep falling, but the rest of the market is supporting Wall Street

NEW YORK (AP) — Wall Street is steadying Thursday following jarring drops for stocks worldwide in the artificial-intelligence industry on worries about how much longer the AI frenzy will last.After initially falling to a loss following its worst day since July, the S&P 500 quickly erased it and added 0.1% to edge closer to its all-time high set last week.Continued weakness for AI stocks dragged the Nasdaq composite down 0.4%. stock market nevertheless rose, and the Dow Jones Industrial Average was up 406 points, or 0.8%, as of 12:15 p.m. Eastern time.Markets were much shakier earlier in the day.

A sell-off for AI stocks that began on Wall Street Wednesday whipped around the world and sent South Korea’s Kospi stock index down 7.6% and Japan’s Nikkei 225 down 4.9%.They're the latest swings for AI stocks after they led the market for years. Companies are pouring money into the technology in hopes of bigger profits and improved productivity. But data centers and AI chips cost money, and many companies have been borrowing the cash to get them.Now, after yields in bond markets worldwide hit their highest levels in years and made borrowing money more expensive, worries are rising about how resilient that boom in spending can be.

Many AI-related companies have already taken on debt to build out their aspirations, and stocks are struggling under the debt loads.CoreWeave, which offers AI computing power to customers over the cloud, fell 2.5% a day after tumbling 15.5%. It said in the summer that it had $4.41 billion in principal payments to make on its debt over the second half of this year and another $6.18 billion in 2027. It had more than $5.5 billion in cash, as of June 30.High yields in the bond market also generally make investors less willing to pay high prices for stocks, particularly those seen as the most expensive.Nvidia, the chip company that’s ridden the AI boom to become Wall Street’s most valuable company, fell 1.8% and was the heaviest weight on the S&P 500.

It came into the day with a nearly 1,415% gain since the end of 2022.The losses for AI stocks moderated as the day progressed, which helped broad U.S. CoreWeave had been down as much as 9.5% in the morning before more than halving its loss, while stocks outside of AI were much more resilient.Marsh & McLennan helped lead the market after the insur… The weakness for AI stocks dragged the Nasdaq composite down 0.4%, but the Dow Jones Industrial Average was up 482 points, or 0.9%, as of 11:45 a.m.

Eastern time as the majority of U.S stocks climbed.Markets were much shakier earlier in the day. NEW YORK (AP) — More drops for artificial-intelligence stocks are hitting Wall Street Thursday, but gains for the rest of the market are keeping U.S. indexes near their records.The S&P 500 was virtually unchanged in midday trading after erasing an early loss.

Eastern time as the majority of U.S stocks climbed.The sharp drops for AI stocks began on Wall Street Wednesday and then whipped around the world to send South Korea’s Kospi down 7.6% and Japan’s Nikkei 225 down 4.9% before returning to the United States.It’s their latest stunning swing after they led the market for years. Companies are pouring money into AI in hopes of bigger profits and improved productivity. Taiwan Semiconductor Manufacturing Co.