Wall Street steadies as AI stock sell-off eases

Wall Street steadied Thursday after AI stocks suffered sharp drops, with the S&P 500 erasing early losses to add 0.1 per cent, while the Dow rose 482 points. The Nasdaq fell 0.4 per cent as AI weakness persisted. The sell-off, triggered by concerns over AI spending sustainability amid high bond yields, hit global markets earlier, sending South Korea's Kospi down 7.6 per cent and Japan's Nikkei 225 down 4.9 per cent. Nvidia fell 2 per cent, while CoreWeave dropped 3.5 per cent after a 15.5 per cent tumble. Treasury yields fell to 5.09 per cent from 5.19 per cent despite stronger-than-expected economic reports. Marsh & McLennan climbed 6 per cent on strong profits, and seven of every 10 S&P 500 stocks rose, though AI companies' large valuations amplified their market impact.