Another wild session on Wall Street where the Dow closed at a new record but AI stocks dragged the other two benchmarks under water.

📉 Records and reversals

  • The S&P 500 retreated from an intraday record Wednesday and closed 0.2% lower at 7,723.55 as technology stocks weakened.
  • The reversal ended the index’s four-session winning streak. Traders reached the peak, took the screenshot and immediately headed downhill.
  • The Nasdaq Composite dropped 0.8% as investors pared risky AI bets. “Pare” simply means reduced exposure, usually by selling part of a position.
  • After several , some traders apparently remembered that profits only become real after pressing sell.
  • The Dow ignored the technology wobble and gained 263 points, or 0.5%, to a third consecutive record close of 54,349.12. Strong corporate earnings and gains in selected blue chips helped the index outperform its more tech-heavy peers.

🤖 Musk picks a winner and a loser

  • Nvidia climbed more than 3% after Elon Musk said SpaceX would for future AI infrastructure. Musk called Nvidia’s technology the “best AI computer,” delivering a valuable endorsement and a rather public .
  • SpaceX suffered a big blow, after its first public earnings report. Revenue nearly doubled and losses beat expectations, but almost $16 billion of quarterly AI spending frightened investors.
  • AMD fell about 7% after adjusted earnings only narrowly exceeded forecasts and its outlook failed to inspire. Alphabet also struggled, helping pull the Magnificent Seven lower.

🌏 Tech selloff crosses oceans

  • Asian chip stocks followed Wall Street lower Thursday. South Korea’s Kospi sank more than 5% intraday before trimming some losses, while SK Hynix plunged nearly 10%, Samsung Electronics dropped roughly 6% and other semiconductor names joined the retreat.
  • Japan’s Nikkei 225 declined around 1% as technology stocks weakened, although the broader Topix edged higher.
  • That divergence echoed Wall Street: companies outside the AI trade remained comparatively steady while the market’s most crowded positions absorbed another burst of volatility.
  • Dow futures edged higher early Thursday after the blue-chip index’s latest record, with investors awaiting another round of corporate earnings.
  • The broader market remains near historic highs, but this week’s message is clear: AI enthusiasm comes quickly and goes quickly.