{"id":139405,"date":"2026-07-16T09:59:03","date_gmt":"2026-07-16T15:59:03","guid":{"rendered":"https:\/\/www.durangoherald.com\/tj\/ai-stocks-slump-again-while-oil-prices-keep-climbing\/"},"modified":"2026-07-16T10:02:25","modified_gmt":"2026-07-16T16:02:25","slug":"ai-stocks-slump-again-while-oil-prices-keep-climbing","status":"publish","type":"post","link":"https:\/\/www.durangoherald.com\/tj\/ai-stocks-slump-again-while-oil-prices-keep-climbing\/","title":{"rendered":"Slumping AI stocks overshadow gains for the rest of Wall Street, while oil prices drift"},"content":{"rendered":"

\"Trader
Trader Robert Oswald works on the floor of the New York Stock Exchange, Thursday, June 25, 2026. (AP Photo\/Richard Drew)<\/span>(AP Photo\/Richard Drew)<\/span><\/figcaption><\/figure>\n

NEW YORK (AP) \u2014 Computer chipmakers and other winners of the artificial-intelligence<\/a> boom are slumping again<\/a> Thursday and weighing on stock markets worldwide. They’re drowning out strength for most of the rest of Wall Street, leaving U.S. stock indexes mixed.<\/p>\n

The S&P 500 fell 0.2%, a day after it pulled within 0.5% of its all-time high<\/a> set last month<\/a>. The Dow Jones Industrial Average was up 102 points, or 0.2% as of 11:45 a.m. Eastern time, and the Nasdaq composite was 0.7% lower.<\/p>\n

The majority of stocks on Wall Street rose after several of the country’s biggest companies reported better profits for the latest quarter than analysts expected.<\/p>\n

Abbott jumped 11.1% after the healthcare company delivered a fatter profit than expected and raised its forecast for earnings over the full year. UnitedHealth Group climbed 3.5% after likewise reporting better results than Wall Street expected.<\/p>\n

But a 1% move for Nvidia’s stock packs more punch on the S&P 500 than a 1% move for any other company because it’s the largest on Wall Street by value.<\/p>\n

And Nvidia fell 2.5%, making it the heaviest weight on the index. Other AI winners also sank, giving back some of their stellar gains.<\/p>\n

Micron Technology fell 5.7% to shave its gain for the year so far below 200%. Sandisk fell 10.6% but is nevertheless still up 500% for the year so far. Western Digital sank 9% but is still up 170% for the year so far.<\/p>\n

Such stocks have been under pressure for weeks because of worries that their prices shot too high and that voracious demand for computer memory and processors may not be sustainable if AI ends up not producing as much profit and productivity as promised.<\/p>\n

The losses came even though Taiwan Semiconductor Manufacturing Co.<\/a>, a bellwether of the chip industry, reported a stronger profit for the latest quarter than analysts expected. Its stock in Taiwan rose 1.2%, but its stock that trades in the United States fell 2.2%.<\/p>\n

In South Korea, drops for AI winners like Samsung Electronics and SK Hynix dragged the Kospi index down 6.4%. It\u2019s been among the world\u2019s shakiest markets in recent weeks because of how dominant the two AI winners are in it.<\/p>\n

The day before, the Kospi jumped 6.2%, but it\u2019s had drops of 8.9%, 7.8% and 5.3% in the last two weeks.<\/p>\n

A hike to interest rates<\/a> by the Bank of Korea also weighed on stocks in Seoul, the first by the bank since 2023.<\/p>\n

Higher interest rates can keep a lid on inflation, but they also slow the economy and hurt prices <\/a> for all kinds of investments. And worries are rising that the Federal Reserve<\/a> and other central banks around the world may have to raise rates<\/a> to rein in the effects of expensive oil.<\/p>\n

Oil prices are near their highest in a month because of worries that the war with Iran will mean oil tankers can’t use the Strait of Hormuz<\/a> to carry crude from the Persian Gulf to customers worldwide.<\/p>\n

The price for a barrel of Brent crude briefly climbed above $86 per barrel in the morning but later erased the gain and fell back to $84.75, down 0.2% from the day before.<\/p>\n

In the bond market, the 10-year Treasury yield climbed to 4.57% from 4.55% late Wednesday and just 3.97% before the war with Iran began.<\/p>\n

Reports on the U.S. economy came in mixed, which added to the eddies swirling through the bond market. One report said shoppers spent less at U.S. retailers last month than economists expected<\/a>. But after ignoring sales at gasoline stations, spending by U.S. consumers remained resilient.<\/p>\n

A separate report said fewer U.S. workers applied for unemployment benefits<\/a> last week, an indication of a solid job market, while a third report said manufacturing in the mid-Atlantic region is better than economists expected.<\/p>\n

In stock markets abroad, indexes fell across much of Europe and Asia, including drops of 1.8% in Shanghai and 2.8% in Tokyo.<\/p>\n

Hong Kong\u2019s Hang Seng was an outlier and rose 1.3%. Alibaba<\/a> rose after China\u2019s cyberspace regulator said Wednesday it had approved the Apple Intelligence AI tool for use in China. An Alibaba spokesperson said its Qwen model will be integrated into Apple Intelligence.<\/p>\n

___<\/p>\n

AP Business Writers Chan Ho-him and Matt Ott contributed to this report.<\/p>\n","protected":false},"excerpt":{"rendered":"

Trader Robert Oswald works on the floor of the New York Stock Exchange, Thursday, June 25, 2026. (AP Photo\/Richard Drew)(AP Photo\/Richard Drew) NEW YORK (AP) \u2014 Computer chipmakers and other winners of the artificial-intelligence boom are slumping again Thursday and weighing on stock markets worldwide. They’re drowning out strength for most of the rest of […]<\/p>\n","protected":false},"author":1,"featured_media":139406,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5734],"tags":[],"naviga_topic":[],"class_list":["post-139405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-associated-press"],"acf":[],"author_name":"Website Administrator","_links":{"self":[{"href":"https:\/\/www.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/139405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.durangoherald.com\/tj\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.durangoherald.com\/tj\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.durangoherald.com\/tj\/wp-json\/wp\/v2\/comments?post=139405"}],"version-history":[{"count":3,"href":"https:\/\/www.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/139405\/revisions"}],"predecessor-version":[{"id":139420,"href":"https:\/\/www.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/139405\/revisions\/139420"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.durangoherald.com\/tj\/wp-json\/wp\/v2\/media\/139406"}],"wp:attachment":[{"href":"https:\/\/www.durangoherald.com\/tj\/wp-json\/wp\/v2\/media?parent=139405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.durangoherald.com\/tj\/wp-json\/wp\/v2\/categories?post=139405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.durangoherald.com\/tj\/wp-json\/wp\/v2\/tags?post=139405"},{"taxonomy":"naviga_topic","embeddable":true,"href":"https:\/\/www.durangoherald.com\/tj\/wp-json\/wp\/v2\/naviga_topic?post=139405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}