Wall Street Retreats as AI Stocks Slip and Treasury Yields Remain Elevated
The S&P 500 fell 0.7% for a third straight modest loss since setting its all-time high on Thursday. The Dow Jones Industrial Average dipped 116 points (0.2%) and the Nasdaq composite sank 1.3%.
Micron Technology dropped 7% and the seller of computer memory was one of the heaviest weights on the S&P 500. So were chip companies Nvidia which fell 2.3% and Broadcom which sank 3.2%. Even with their recent swings such stocks remain big winners and Micron has more than tripled this year.
Meta Platforms fell 4.4% as opening statements began in a pivotal trial in a California federal court, where states are seeking billions of dollars in damages for social media harms to children. Klarna fell 22.8% even though the payments company reported stronger results for the latest quarter than analysts expected. The buy-now, pay-later company cut some of its financial forecasts for 2026, largely because of expectations for Germany, its largest market by volume.
South Korea?s Kospi fell 1.5%, which counts as relatively modest move for it. It had swung by at least 2.4% in each of its three prior days. Seoul?s market has been home to some of the world?s sharpest AI-induced swings because it?s dominated by two tech giants, Samsung Electronics and SK Hynix.
The yield on the 10-year U.S. Treasury edged down to 4.70% from 4.72% late Monday but remains well above its 3.97% level from just before the war with Iran began. The 30-year Treasury yield also ticked lower but is still near its highest level since 2007.
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