US stocks today: Wall Street under pressure as Nvidia, AMD & Micron lead AI stock sell-off

Published 1 July 2026 · finance

Wall Street falls as AI giants slide; investors track Iran tensions and Fed outlook Rate concerns, manufacturing data influence sentiment Oil prices ease as investors

Wall Street falls as AI giants slide; investors track Iran tensions and Fed outlook Rate concerns, manufacturing data influence sentiment Oil prices ease as investors track Iran talks General Mills, Nike gain; Kroger falls Global markets mixed US stocks traded under pressure on Wednesday as declines in major artificial intelligence-related companies weighed on the broader market, despite gains across most other sectors.Investors also remained cautious over US-Iran tensions, interest rate uncertainty and the outlook for inflation.The S&P 500 slipped 0.1 per cent in early trading and was on track for its eighth decline in the past 11 sessions.The Dow Jones Industrial Average gained 122 points, or 0.2 per cent, while the Nasdaq Composite fell 0.4 per cent.AI-linked technology stocks were among the biggest drags on Wall Street. Nvidia declined 2 per cent, Micron Technology fell 6.2 per cent and Advanced Micro Devices dropped 4.2 per cent as investors continued to reassess valuations of companies that had surged during the artificial intelligence boom.AI stocks have become some of the most influential companies in the market, meaning their declines can weigh heavily on major indexes even when a majority of individual stocks are gaining.Nearly two-thirds of companies in the S&P 500 were trading higher during the session.The market pared some early losses after US Treasury yields eased from morning highs.The yield on the benchmark 10-year Treasury note briefly approached 4.50 per cent before falling below 4.46 per cent after data showed US manufacturing growth slowed slightly more than economists expected last month, news agency AP reported.The weaker manufacturing data reduced some concerns over inflation and raised hopes that the Federal Reserve may have less pressure to raise interest rates later this year.Investors have been worried that the Fed may need to increase borrowing costs several times in 2026 to control inflation, particularly after higher oil prices pushed up global price pressures following the US-Iran conflict.Traders expect the US central bank to raise rates at least once by the end of the year, based on LSEG data. Interest rate uncertainty has also increased after Federal Reserve Chair Kevin Warsh began a review of the central bank’s communication strategy."The mood is sanguine, but not complacent," Benjamin Jones, global head of research at Invesco, said, according to Reuters.Oil prices declined on Wednesday as markets continued to monitor efforts to end the US-Iran conflict and reopen the Strait of Hormuz for oil shipments.Brent crude, the global benchmark, fell 1.2 per cent to $72.04 per barrel, AP reported.However, uncertainty over Middle East peace talks continued to weigh on investor sentiment after Tehran indicated it would not meet top US envoys who travelled to the region.Mixed signals from both sides have made it difficult for markets to assess the possibility of a breakthrough.Higher oil prices have been a key concern for investors as they could worsen inflation and increase pressure on central banks to keep rates higher for longer.Several companies moved sharply during the session.General Mills shares jumped 9.1 per cent after the Cheerios and Progresso maker reported quarterly results that exceeded analyst expectations and announced a plan to cut $3 billion in costs over four years..Nike shares rose 3.8 per cent after the sportswear giant posted stronger-than-expected quarterly profit. CEO Elliott Hill said the company’s turnaround efforts were continuing, though revenue challenges remained.Meanwhile, Kroger declined after announcing a deal to acquire regional supermarket chain Giant Eagle.The deal involves a $1.25 billion cash payment along with the assumption of $400 million in liabilities, while Reuters pegged the transaction value at $1.65 billion.Meta Platforms was among the notable gainers, rising 8.4 per cent after a report suggested the company was building a cloud business to sell excess AI computing capacity, Reuters reported.Global markets remained uneven, with European indexes falling after mixed trading across Asia.South Korea’s Kospi dropped 2 per cent, weighed down by weakness in AI-related stocks, although the index remained up around 97 per cent for the year so far, AP reported.Japan’s Nikkei 225 gained 0.6 per cent as the yen weakened to a 40-year low against the US dollar.Despite Wednesday’s weakness, the S&P 500 and Nasdaq Composite had recorded their strongest quarterly performances since 2020 in the second quarter of 2026, while the Dow posted its best quarter since 2022.