More drops in artificial-intelligence shares pulled the U.S. market lower on Wednesday, marking the fourth straight day of decline for Wall Street.
AI Stocks Lead the Slide
Companies tied to AI technology were the heaviest losers. Broadcom fell 4.5%, Oracle slid 5.4%, and CoreWeave sank 7.1%. Nvidia, the chipmaker that has become a bellwether for AI, dropped 3.8% and was the day’s biggest weight on the S&P 500.
Power-sector stocks also slipped after earlier gains tied to data-center demand. Constellation Energy fell 6.7%. The decline in AI names weighed on the broader index even though slightly more S&P 500 constituents rose than fell.
A UBS survey of large businesses found that only 17% are running AI projects at scale. UBS analysts said this could be “a reminder for tech investors to remain sober about the likely 2026 revenue growth uplift from AI products,” though the rate continues to rise.
Market Indices Take a Hit
The S&P 500 fell 78.83 points to 6,721.43, a 1.2% drop that is the worst in nearly a month. The Dow Jones Industrial Average dipped 228.29 points to 47,885.97, and the Nasdaq composite fell 418.14 points to 22,693.32.
Lennar shares fell 4.5% after a mixed profit report. The homebuilder posted a weaker quarterly profit than analysts expected, though revenue topped forecasts. Executive Chairman Stuart Miller said that conditions remain challenging, with customers feeling less confident while looking for discounts and more affordable options. As a result, the company gave limited forecasts for its upcoming financial performance.
Progressive Insurance slipped 2% after the Ohio-based insurer reported that its net income for November fell 5% from a year ago.
Oil and Energy Rally
Oil companies benefited from a price surge triggered by President Donald Trump’s order to block all “sanctioned oil tankers” into Venezuela. The move lifted the benchmark U.S. crude price 1.2% to $55.94, its highest level since a low in 2021. Brent crude climbed 1.3% to $59.68.
ConocoPhillips rose 4.6%, narrowing its year-to-date loss to 8.5%. Devon Energy rallied 5.3%, and Exxon Mobil climbed 2.4%.
Streaming and Media Moves
Netflix added 0.2% after Warner Bros. Discovery’s board reaffirmed its recommendation that shareholders approve a buyout offer from the streaming giant for its Warner Bros. business. The recommendation came amid a competing hostile bid from Paramount Skydance for the entire company. Warner Bros. Discovery fell 2.4%, while Paramount Skydance dropped 5.4%.
Bond and International Markets
In the bond market, Treasury yields held steady ahead of a Thursday report on U.S. consumer inflation. The 10-year Treasury yield was 4.15%, unchanged from late Tuesday.
Internationally, South Korea’s Kospi leaped 1.4%, one of the world’s biggest gains for the day, and trimmed its weekly loss to 2.7%.
Key Takeaways
- AI stocks led the decline, with Nvidia, Broadcom, Oracle and CoreWeave falling 3.8% to 7.1%.
- The S&P 500, Dow and Nasdaq all fell, marking the fourth straight loss for Wall Street.
- Oil prices surged after a Trump-issued blockade, lifting U.S. and Brent crude to multi-year highs.
The market’s downturn underscores the volatility in AI and energy sectors, while bond yields remain unchanged amid pending inflation data.
