Wall Street slips after morning rally evaporates Wall Street slips after a morning rally evaporates as some of the market's AI darlings drop

NEW YORK - U.S. stocks slumped Wednesday after a morning rally evaporated, but the losses on Wall Street weren't as bad as the manic moves that wracked markets worldwide over the past week.

The S&P 500 slipped 40.53 points, or 0.8%, to 5,199.50 after an earlier jump of 1.7% petered out. The Dow Jones Industrial Average fell 234.21 points, or 0.6%, to 38,763.45, while the Nasdaq composite dropped 171.05 points, or 1%, to 16,195.81.

Stocks swung lower as Nvidia, one of Wall Street's most influential companies, went from a morning gain of 4.4% and pushing strongly upward on the S&P 500 to a loss of 5.1% that made it the index's heaviest weight.

It and other Big Tech stocks struggled in the past month on worries their prices shot too high amid Wall Street's frenzy around artificial-intelligence technology.

A profit report from Super Micro Computer, whose stock more than quadrupled in less than three months to start the year, helped further mar excitement around AI. Even though its revenue soared 143% in the latest quarter, profit for the company that sells server and storage systems used in AI and other computing fell short of analysts' expectations. Its stock tumbled 20.1%.

Japan's rate hike last week sent the value of the Japanese yen soaring, and the resulting exit of investments by hedge funds likely slapped turbochargers onto market losses.

Treasury yields tumbled sharply Monday, when fear in the market spiked and investors speculated the Federal Reserve may have to call an emergency meeting to cut interest rates quickly. They stabilized since then.

The yield on the two-year Treasury held steady at 3.99% Wednesday, where it was late Tuesday.

Wall Street expects the Fed to cut its main interest rate at its meeting next month.

Earnings reports from the biggest U.S. companies continue to roll in, and the growth for those in the S&P 500 index may end up being the best since 2021, according to FactSet.

The Walt Disney Co. delivered stronger earnings for the latest quarter than analysts expected, and its streaming business reported a profit for the first time. Its stock nevertheless fell 4.5% after it warned recent softness it saw at its U.S. theme parks could continue for "the next few quarters."

Airbnb tumbled 13.4% after its profit in the second quarter fell short of analysts' expectations, and it told investors that it saw some signs of slowing demand in the U.S.

Helping to limit the market's losses was Apple, which rose 1.2%. It clawed back some of its losses from earlier in the week after Warren Buffett's Berkshire Hathaway disclosed it slashed its ownership stake in the iPhone maker.

In stock markets abroad, indexes climbed across much of Europe and Asia.