US stocks drop sharply as investors hunt for losers that will be hurt by AI

By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stocks fell sharply Thursday as the market punished companies seen as potential losers from artificial-intelligence technology.

The S&P 500 sank 1.6% for its second-worst day since Thanksgiving, though it’s still near its all-time high set late last month. The Dow Jones Industrial Average dropped 669 points, or 1.3%, and the Nasdaq composite fell 2%.

AppLovin lost nearly a fifth of its value and tumbled 19.7%, even though it reported a stronger profit for the latest quarter than analysts expected. Like other software companies, it’s come under pressure from worries that AI may undercut its business while fundamentally changing how people use the internet.

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