U.S. stocks retreated for a third straight session as weakness in highflying AI names weighed on the broader market. The S&P 500 slipped 0.7% to 7,691.76, the Dow fell 0.2% to 53,343.40 and the Nasdaq lost 1.3% to 26,289.71. Chipmakers led declines amid renewed concern that AI demand could cool and lofty valuations won’t hold with rates elevated: Micron dropped 7%, Nvidia fell 2.3% and Broadcom slid 3.2%. Yields eased marginally but stayed elevated, with the 10-year Treasury at 4.70% and the 30-year near its highest since 2007, as higher oil prices stoke inflation worries. Brent crude added 0.2% to $91.02, well above pre-war levels. Higher borrowing costs continued to bite: housing starts missed expectations and Home Depot edged down 0.1% despite a top- and bottom-line beat, as shoppers favored smaller projects. Klarna tumbled 22.8% after trimming 2026 guidance, and Meta fell 4.4% as a major child-safety trial opened. Overseas markets were mixed; South Korea’s Kospi dropped 1.5% amid heightened volatility in AI-linked shares.
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