The three major indexes on Wall Street opened lower as jitters over the artificial intelligence (AI) industry persisted.
As of 10:56 a.m. on the 12th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average fell 83.46 points, or 0.17%, to 48,620.55. The Standard & Poor's (S&P) 500 dropped 54.29 points, or 0.79%, to 6,846.35, and the Nasdaq composite declined 303.62 points, or 1.29%, to 23,289.53.
Broadcom, a major AI stock alongside Nvidia, issued a sales outlook below market expectations the previous day, keeping concerns about the AI industry alive.
Broadcom Chief Executive Officer Hock Tan said on the fiscal 2025 fourth-quarter conference call that "rapidly growing AI revenue is smaller than non-AI revenue." Broadcom also held off on issuing its fiscal 2026 AI revenue outlook, citing market uncertainty.
Oracle the previous day heightened worries that it is ramping up investment to a degree that makes a turn to revenue difficult, and Broadcom's downbeat outlook the same day appeared to weigh on tech stocks. Early in the session, Broadcom fell more than 10% and Oracle also dropped more than 3%. Palantir was down nearly 3%.
By sector, communications and energy weakened along with technology, while financials, consumer goods, and real estate were firm. Lululemon Athletica jumped more than 10% on news of the CEO's resignation, and Tilray Brands surged more than 24% on news of an executive order to reclassify marijuana from a Schedule I to a Schedule III substance.
European stocks were mixed and international oil prices fell.