The S&P 500 fell 1.2 percent on Thursday, marking its worst single-day performance since July, as a sharp decline in artificial intelligence stocks weighed heavily on the broader market. The Nasdaq composite tumbled 2.6 percent, reflecting the intense selling pressure on tech-heavy portfolios. This weakness in the technology sector was so pronounced that it obscured gains elsewhere in the U.S. equity market, where the majority of stocks actually rose.
The Dow Jones Industrial Average edged up less than 0.1 percent, closing at 52,867.98 after gaining 11.89 points. The S&P 500 dropped 93.74 points to finish at 7,663.43, while the Nasdaq composite lost 694 points to close at 26,008.86. The Russell 2000 index of smaller companies rose 3.01 points, or 0.1 percent, to 2,784.03.
Market nervousness surrounding the sustainability of the AI boom, particularly in the context of high interest rates, contributed to the volatility. These concerns also helped pull Treasury yields sharply lower. Additionally, oil prices jumped on worries regarding the war with Iran.
For the week, the S&P 500 is up 3.99 points, or 0.1 percent, and the Dow is up 865.57 points, or 1.7 percent. The Nasdaq is down 131.17 points, or 0.5 percent, while the Russell 2000 is up 62.66 points, or 2.3 percent.
Year to date, the S&P 500 is up 817.93 points, or 11.9 percent, and the Dow is up 4,804.69 points, or 10 percent. The Nasdaq is up 2,766.87 points, or 11.9 percent, and the Russell 2000 is up 302.12 points, or 12.2 percent.