NewzNEW YORK (AP) — Drops for stocks in the artificial-intelligence industry are dragging markets down worldwide on Thursday, while oil prices hit their highest levels since May on worries about the war with Iran.The S&P 500 tumbled 1.4% following even sharper losses in Asia, whose markets are full of AI and other technology stocks. The Nasdaq composite was down 2.2%, as of 10:45 a.m. Eastern time, but stocks outside of tech did better, and the Dow Jones Industrial Average was down a more modest 0.6%, or 295 points.AI-related stocks have been shaky on worries that their boom may be under threat because of how expensive it’s become to borrow money to build data centers and buy more AI chips.
Concerns also remain that stock prices simply shot too high in their yearslong frenzy, even though companies in the industry continue to report growth.Lam Research, whose equipment and services help make semiconductors, reported gains in profit and revenue for the summer that were slightly stronger than analysts expected, for example. Usually, that helps boost a stock’s price, but Lam Research’s tumbled 9.7%.It gave a range as its forecast for profit in the final three months of 2026 whose midpoint was slightly below analysts’ expectations. Its stock also came into the day with a 52.4% surge for the year so far, nearly quadruple the already healthy gain for the overall S&P 500, leaving plenty of room for potential disappointment.Other big tech stocks were unsettled following their own quarterly reports that included at least some encouraging nuggets.Meta Platforms, which is pushing its Muse AI agent, lost 6.4% after reporting stronger revenue for the latest quarter than analysts expected, though its profit fell short.
The company behind Facebook and Instagram also said it's creating a new class of stock to raise money to pay for AI investments and other expenses.Tesla erased an early drop to rise 0.1% after reporting a stronger profit for the summer than analysts expected, though its revenue was weaker than forecast.The global tide against AI stocks knocked Nvidia down 3.8%. Because it’s the largest stock on Wall Street by total value, the chip giant was the heaviest weight on the S&P 500.CoreWeave, which has borrowed money to buy Nvidia’s AI chips that it rents out to customers over the cloud, has been particularly shaky in recent weeks because of worries about its debt. NEW YORK (AP) — Sharp drops for stocks in the artificial-intelligence industry are dragging down markets worldwide on Thursday, while oil prices hit their highest levels since May because of worries about the war with Iran.The S&P 500 sank 0.8% following even sharper losses in Asia, whose markets are full of AI and other technology stocks.
The Dow Jones Industrial Average was down 142 points, or 0.3%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 1.3% lower.AI stocks have been shaky on worries that their boom may be under threat because of how expensive it’s become to borrow money to build data centers and buy more AI chips. Concerns also remain high that prices simply shot too high for AI-related stocks in their yearslong frenzy, even though companies in the industry continue to report growth.Lam Research, whose equipment and services help make semiconductors, reported gains in both profit and revenue for the summer that were slightly stronger than analysts expected, for example.
Usually, that helps boost a stock’s price, but Lam Research’s tumbled 10.1% for one of the market's sharpest losses.It gave a forecasted range for profit in the final three months of 2026 whose midpoint was slightly below analysts’ expectations. It dropped 3.6%, though it’s swung between gains and losses of roughly 4% in each of the last two days.The weakness for AI and other tech stocks began in Asia, where South Ko…
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