Stock Market Today: S&P 500 and Nasdaq Fall as AI Worries Hit Tech Stocks

U.S. stocks fell sharply Thursday as concerns about artificial intelligence valuations hammered technology shares. The S&P 500 dropped 1.2% and the Nasdaq Composite declined 2.6%, marking their worst days since July and June respectively, while the Dow closed slightly higher. Major tech stocks including Nvidia (down 4.4%), Alphabet (down 3.2%) and Advanced Micro Devices (down 8.1%) led declines as Nvidia CEO Jensen Huang acknowledged capital scarcity in AI infrastructure buildout.

Meta shares fell nearly 7% following earnings and a stock split announcement, while CoreWeave sank 10% amid rising capital costs. Treasury yields fell as investors shifted to bonds, with the 10-year yield sliding 18.5 basis points to 4.961%. Oil prices surged on reports of renewed U.S.-Israeli military preparations against Iran and an attack on Saudi Arabian energy infrastructure, pushing Brent crude up 4% to $113.17.