Sell off for AI stocks drags Wall Street to first back to back drop in weeks

Another sell-off for artificial-intelligence stocks dragged the U.S. market sharply lower. The S&P 500 dropped 1.6% Wednesday after giving up a brief modest gain in the morning. The index had its first back-to-back drop in three weeks. The Dow Jones Industrial Average sank 1.9%, and the Nasdaq composite lost 2%. Wall Street has been shaky since last week, when AI stocks went from roaring to records to suddenly turning lower. Among the worries is that their prices have simply shot too high, too fast. Oil prices rose after President Donald Trump threatened more strikes on Iran. Super Micro Computer, which sells AI servers, tumbled 23.1% after saying late Tuesday that it plans to raise $7 billion in cash by selling shares of stock and convertible preferred stock. Such moves raise the most money for companies when their stock prices are high, and they can dilute the ownership stakes of existing shareholders. Micron Technology went from an early loss of nearly 4% to a modest gain and back to a loss of 4.7%. It's coming off a wild stretch where it sank 7.7% last Thursday, then plunged another 13.3% Friday and rallied 9.9% Monday. Despite all the swings, the computer memory maker's stock is still up 212.6% for the year so far. ------------------------------------- Follow Scripps News on other platforms— Join our newsletter at https://bit.ly/2q1tepr Follow us on Facebook: https://www.facebook.com/scrippsnews/ Follow us on X: https://x.com/scrippsnews Follow us on Instagram: https://www.instagram.com/scrippsnews/ Follow us on TikTok: https://www.tiktok.com/@scrippsnews