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.
