FX.co ★ Tech Weighs Further on US Stocks

US stocks declined on Tuesday as renewed uncertainty over how artificial intelligence could disrupt the corporate sector weighed heavily on major technology names. The Nasdaq 100 slipped more than 1%, while the S&P 500 lost 0.7% and the Dow Jones Industrial Average dropped about 250 points.

Software-as-a-service providers were under particular pressure amid concerns that advances in AI-driven automation could erode demand across the segment. Shares of Oracle, Intuit, and Salesforce fell between 3% and 5%.

Hardware makers that have recently benefited from a surge in datacenter capital expenditure were also volatile, as investors questioned whether that spending will deliver the returns previously anticipated. AMD declined more than 4%, while Micron and Nvidia also traded solidly in negative territory. Cybersecurity firm CrowdStrike slumped 7% after Mizuho downgraded its rating on the stock.

In contrast, banks and credit providers advanced, supported by a rally in Treasuries. Growing expectations that the Federal Reserve may move toward lower interest rates boosted hopes for stronger credit demand and lending activity.