As concerns grew that artificial intelligence (AI) technology will replace the existing software (SW) industry, the New York stock market closed lower on the 3rd (local time).
On the 3rd (U.S. Eastern time) at the New York Stock Exchange (NYSE), the Dow Jones industrial average fell 166.67 points (0.34%) from the previous session to close at 49,240.99. The Standard & Poor's (S&P) 500 dropped 58.63 points (0.84%) to 6,917.81, and the Nasdaq composite fell 336.92 points (1.43%) to 23,255.19.
Heavy selling in technology stocks led the decline that day. Nvidia, Broadcom, ASML, Lam Research, KLA, and Qualcomm logged losses of around 3%. Micron Technology, one of the steepest gainers this year, fell 4.20%, undergoing a correction.
As worries spread that Generative AI tools such as "Claude CoWork," unveiled by AI company Anthropic, will encroach on major software companies, software and computer services sector indexes also slid sharply that day. The Dow Jones software index plunged 3.48%, and the computer services index tumbled 7.70%.
The Financial Times (FT) of the U.K. reported, "U.S. technology stocks tumbled on Tuesday as fresh worries about the impact of AI on the software business swept Wall Street."
Even amid the tech sell-off, Walmart was highlighted as both a growth and defensive stock, surpassing a $1 trillion market capitalization for the first time. It is the 11th among U.S. corporations. Inclusion in the Nasdaq 100 drew index-tracking funds, which also had a big impact.
As risk-off sentiment spilled into the cryptocurrency market, bitcoin fell more than 6% intraday, giving back all gains since U.S. President-elect Donald Trump's victory. U.S. financial media CNBC said, "Bitcoin fell more than 6% to trade as low as $72,884.38 per coin."