Wall Street's flip from AI to less-loved stocks accelerates, while oil prices keep easing

NEW YORK (AP) — Most of Wall Street rose Tuesday, even as stocks of computer chipmakers continued to tumble worldwide. Oil prices, meanwhile, eased further from the two-month high they hit last week.

The S&P 500 added 0.2%, but the modest move masked big swings underneath the surface. The Dow Jones Industrial Average jumped 537 points, or 1%, while the Nasdaq composite slipped 0.2% after briefly dropping 9.3% below its record set last month.

The majority of the U.S. market rose after more companies delivered stronger profits for the spring than analysts expected. Coca-Cola climbed 5% after its revenue rose 7% despite what CEO Henrique Braun called “a dynamic consumer landscape.”

Sherwin-Williams rallied 8.3%, and Illinois Tool Works rose 3.6% after both likewise reported stronger earnings for the latest quarter than analysts expected. Stock prices generally follow the trend of corporate profits over the long term, and expectations are high for this most recent round of reports with the U.S. stock market still near its all-time high.

Such expectations are weighing particularly heavily on stocks of chipmakers and other companies that have been huge winners from the boom in artificial-intelligence technology.

Micron Technology’s stock came into the day having more than tripled for the year following gangbuster growth, for example. During the three months through May 28, its revenue more than quadrupled from a year earlier.

But worries are rising about whether such growth is sustainable. Big spenders on computer memory could pull back on investments if AI does not produce as much profit or productivity as promised. Lower-cost AI models from China could also mean less demand for memory and computing power than earlier expected.