U.S. equities moved lower on Tuesday as weakness in artificial intelligence-related stocks and rising energy prices weighed on investor sentiment.

The S&P 500 retreated from recent record highs, while the Nasdaq Composite posted sharper losses due to declines in major technology and semiconductor companies. The Dow Jones Industrial Average also finished slightly lower.

Several large AI-focused chipmakers led the market decline. Shares of Broadcom, NVIDIA, and Micron Technology all moved lower amid growing concerns about whether the rapid pace of artificial intelligence spending can be sustained.

Investor caution increased following reports questioning whether some technology firms may reduce spending on data center expansion and AI infrastructure after falling short of certain growth expectations. The discussion has renewed debate over whether parts of the AI sector may be experiencing overly aggressive valuations.

Markets are also awaiting earnings reports from several major technology companies, including Alphabet, Amazon, Meta, and Microsoft, with investors looking for updates on artificial intelligence investments and profitability.

At the same time, oil prices continued rising as tensions surrounding Iran and shipping activity through the Strait of Hormuz remained unresolved. Brent crude prices climbed above $110 per barrel, increasing concerns about inflationary pressure and the broader economic outlook.

Higher fuel prices have already begun affecting some industries. Airline companies, including JetBlue, faced pressure from increasing operating costs tied to energy prices, although some companies reported improving travel demand.

Meanwhile, Coca-Cola shares moved higher after the company reported stronger-than-expected quarterly results supported by international sales growth.

Investors are also closely watching upcoming decisions from the Federal Reserve, with markets widely expecting interest rates to remain unchanged. Policymakers continue balancing concerns about economic growth against the risk that elevated oil prices and tariffs could keep inflation higher for longer.

Outside the United States, stock markets across Europe and Asia also weakened, while the Bank of Japan maintained its current interest rate policy amid growing geopolitical uncertainty. BNN Bloomberg