More swings for AI stocks drag Wall Street back on the roller coaster
[June 10, 2026] By
STAN CHOE
NEW YORK (AP) — Another sudden reversal for high-flying
artificial-intelligence stocks sent Wall Street reeling on Tuesday.
The S&P 500 fell 0.3% after careening between an initial gain of 1% and
a midday loss of 2.3%, pulling further from its all-time high set a week
ago. After similar yo-yo moves, the Dow Jones Industrial Average added
86 points, or 0.2%, and the Nasdaq composite dropped 1%.
Indexes swung lower after companies selling computer chips, memory and
other building blocks of the AI boom broke from early gains to losses.
Micron Technology went from a jump of 4% to a plummet of 10%, for
example, before finishing with a drop of 1.4%. That’s a day after it
soared 9.9% and two days after it plunged 13.3%.
The computer memory company’s stock has already tripled so far this
year, raising criticism that it’s gone too far, too fast. Following last
week’s industrywide sell-off, the question is whether AI stocks broadly
are heading for a long downturn or just needed a shake-out to get rid of
excessive optimism.
Marvell Technology dropped 7.6%, and Advanced Micro Devices sank 3%
after both AI winners also erased early-morning gains.
All the while, several big-name AI companies are racing to list their
stocks on a U.S. exchange and sell them at high prices. OpenAI, the
maker of ChatGPT, said Monday it was the latest to file confidential
paperwork with U.S. regulators top open the door for an initial public
offering. SpaceX’s IPO could happen later this week.
The weakness for AI stocks drowned out the benefit Wall Street got from
easing oil prices. Nearly three out of every four stocks within the S&P
500 rose, despite the sharp swings for the overall index, as the price
for a barrel of Brent crude oil sank 3% to $91.45.
Oil prices have been unsteady as hopes rise and fade that the United
States and Iran can reach a deal to reopen the Strait of Hormuz. A
reopening would allow oil tankers to resume delivering crude from the
Persian Gulf to customers worldwide.
Oil prices pared their losses, though, after President Donald Trump said
Iran was responsible for downing an American military helicopter near
the Strait of Hormuz and that the United States “must” respond to the
attack.
High oil prices caused by the war with Iran have already created a
painful acceleration of inflation for U.S. shoppers. They have also
pushed bond yields higher worldwide, raising the pressure on stock
prices.
Treasury yields eased Tuesday with the fade in oil prices, relaxing some
of that pressure. The yield on the 10-year Treasury fell to 4.52% from
4.56% late Monday, though it’s still well above its 3.97% level from
before the war with Iran.
The latest monthly updates on U.S. inflation will arrive later in the
week, with one on consumer prices coming Wednesday and one on wholesale
prices coming Thursday.
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Options trader Chris Daytona, right, works on the floor of the New
York Stock Exchange, Wednesday, June 3, 2026. (AP Photo/Richard
Drew)
 Inflation is high enough, and the
U.S. job market looks strong enough, that traders on Wall Street
largely expect the Federal Reserve will have to raise its main
interest rate at least once by the end of this year. Higher interest
rates would keep a lid on inflation, but they would also threaten to
slow the economy and undercut prices for stocks and all kinds of
other investments.
The average long-term U.S. mortgage rate recently hit its highest
level in nine months, and high costs to borrow money could
discourage the building of AI data centers that are fueling the U.S.
economy’s growth.
On Wall Street, airline stocks flew higher after the drop in oil
prices hinted at less pressure on their fuel bills. American
Airlines rose 3.6%, and Delta Air Lines gained 3.8%.
J.M. Smucker jumped 10.4% after reporting a stronger profit for the
latest quarter than analysts expected. The company behind the
Folgers, Hostess and other brands benefited from higher prices
charged for coffee and sweet baked goods. It joined a long list of
U.S. companies delivering stronger profit growth than analysts
expected, which has helped drive the S&P 500 to record after record
this year.
Nuvalent soared 39.3% after GSK agreed to buy the biotech company
for $10.6 billion. The shares of U.K.-based GSK that trade in New
York added 1.2%.
All told, the S&P 500 slipped 19.08 points to 7,386.65. The Dow
Jones Industrial Average added 86.10 to 50,872.11, and the Nasdaq
composite fell 250.84 to 25,678.82.
In stock markets abroad, indexes dipped in Europe following bigger
moves in Asia.
South Korea’s Kospi jumped 8.2% and nearly recovered Monday’s plunge
of 8.3%. It’s been beholden to the performance of big tech stocks
like SK Hynix and Samsung Electronics.
___
AP Business Writers Matt Ott and Elaine Kurtenbach contributed to
this report.
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