Questions have been rising about how much more superstar AI stocks can add to already spectacular gains. At the start of this month, Palantir was sporting a stunning rise of nearly 174% for the year so far, for example.
In the meantime, stocks fell across Wall Street as traders worry that the Federal Reserve may not deliver another cut to interest rates in December, as they had been assuming.
Wall Street loves cuts to rates because they can goose the economy and prices for investments, even though they can also worsen inflation. A halt in cuts could undercut U.S. stock prices after they already ran to records in part on expectations for a series of more reductions.
Recent comments from Fed officials have helped drive the doubt.
In the bond market, Treasury yields rose, which put downward pressure on prices for stocks and other investments.
The yield on the 10-year Treasury rose to 4.10% from 4.08% late Wednesday.
In stock markets abroad, indexes sagged in Europe following modest gains in Asia.
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AP Writers Teresa Cerojano and Matt Ott contributed.
