Wall Street edges lower, but AI stocks continue to surge

NEW YORK

U.S. stocks slightly dipped from their record heights in a quiet Monday on Wall Street.

The S&P 500 slipped

6.13 points (0.1%) to 5,130.95, coming off its latest all-time high and its 16th winning week in the last 18. The Dow Jones Industrial Average dropped 97.55 (0.2%) to 38,989.83. The Nasdaq lost 67.43 (0.4%) to 16,207.51. The Russell 2000 fell 2.09 (0.1%) to 2,074.31.

Momentum slowed for U.S. stocks following their roar higher on excitement that inflation appears to be cooling, cuts to interest rates might be coming and the U.S. economy has so far shrugged off predictions for a recession. At the same time, a frenzy around artificial-intelligence technology has catapulted some stocks to stratospheric heights.

Super Micro Computer, which sells server and storage systems used in AI and other computing, jumped another 18.6% Monday. It has surged nearly 1,000% in the last 12 months. It was the first trading for the stock since an announcement that it will join the S&P 500 in two weeks. Such a move could drive even more investment in the company.

Super Micro Computer will replace Whirlpool, which is on track for a third straight losing year and will fall back to the S&P 400 of mid-sized stocks. Deckers Outdoor will replace Zion Bancorp in the S&P 500.

The symbol of AI mania is Nvidia, whose chips are powering much of the move into AI. It rose 3.6% Monday to bring its gain for the year to 72.1% after more than tripling in 2023. It was by far the strongest force pushing upward on the S&P 500.