Nvidia’s price more than doubled in four of the last five years, for example, while Palantir Technologies’ stock more than doubled in the first six and a half months of this year.
A record percentage of investors is also saying companies are “overinvesting,” according to the survey. The worry is that all the dollars pouring into AI chips and data centers worldwide may not produce the kind of revolution that AI proponents have been predicting, or at least not as profitable a one.
Reporting stronger profits is one of the ways a company can make its stock price look less expensive, because stock prices tend to track with earnings over the long term. That’s raising the stakes for Wednesday’s profit report from Nvidia, which could either help halt its stock’s slide or worsen it.
All told, the S&P 500 fell 55.09 points to 6,617.32. The Dow Jones Industrial Average dropped 498.50 to 46,091.74, and the Nasdaq composite sank 275.23 to 22,432.85.
In the bond market, Treasury yields likewise oscillated through the day. The yield on the 10-year Treasury eventually eased to 4.11% from 4.13% late Monday.
In stock markets abroad, indexes tumbled across Europe and Asia.
South Korea’s Kospi sank 3.3%, Japan’s Nikkei 225 dropped 3.2% and France’s CAC 40 fell 1.9% for some of the world’s larger drops.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
