U.S. stocks retreated on Thursday as names in the artificial intelligence trade came under pressure yet again amid worries around eye-watering valuations.
The S&P 500 traded down by 0.9%, while the Nasdaq Composite shed 1.5%. The Dow Jones Industrial Average slipped 364 points, or 0.8%.
AI stocks remained in focus for those on Wall Street during the session. Qualcomm shed 4%, even after the chipmaker posted better-than-expected quarterly results. Advanced Micro Devices, a standout name in the prior day, declined 7%, while Palantir Technologies and Oracle dipped 3% and 4%, respectively. Shares of AI darling Nvidia and fellow “Magnificent Seven” name Meta Platforms slid as well.
However, Marvell Technology was a winner, with shares moving almost 1% higher following a report that Softbank had thought about a potential takeover of the chipmaker.
Equities linked to the AI space had begun rebounding on Wednesday from valuation concerns that swirled earlier this week, serving as a potential boon for the major indexes.
AMD closed more than 2% higher in the previous session after the semiconductor company reported better-than-expected third-quarter results. The performance pulled up some other AI stocks alongside it, including Broadcom and Micron Technology, which jumped 2% and 9% on the day, respectively. Oracle also recouped some recent losses during the session.
The recovery of the AI names helped the market bounce back Wednesday following a soft start to the week that has all three major U.S. indexes in the red week to date.