S&P 500, Nasdaq Slip as AI Angst Overshadows Hopes for End to U.S. Shutdown

Tech led a retreat in U.S. stocks amid a revival in AI worries, slipping back from a rally fueled by optimism that Washington may soon end the record-breaking government shutdown, Rian Howlett, Karen Friar, and Laura Bratton reported for Yahoo Finance.

The S&P 500 fell below the flat line, and the Nasdaq Composite slipped roughly 0.5%. (Photo: Nasdaq Facebook)

The S&P 500 fell below the flat line, and the Nasdaq Composite slipped roughly 0.5%.

The Dow Jones Industrial Average, which includes fewer tech stocks, inched up 0.2%. The pullback followed a roaring start to the week for stocks as hopes for the AI trade revived.

Testing that faith, SoftBank Group said Tuesday it sold its entire stake in chipmaker Nvidia to fund its own investments in AI development.

The move comes at a time when Wall Street is questioning whether the AI spending spree will pay off amid lofty valuations for related stocks. Shares of Nvidia dropped about 2% in early trading.