US stocks regain momentum, AI stocks stabilize after rocky June

NEW YORK (AP) — U.S. stocks rose Tuesday and trimmed their losses in what had been a rocky June.

The S&P 500 gained 0.8%, though it still fell to its first losing month following two fabulous ones. The Dow Jones Industrial Average added 136 points, or 0.3%, to its record, and the Nasdaq composite climbed 1.5%.

The main reason for the past month’s weakness was a fall to Earth for stocks in the artificial-intelligence industry. After soaring to tremendous heights in the frenzy around AI, such stocks came under pressure because of worries that they shot too high. That’s a big deal for all investors because AI stocks have grown into some of Wall Street’s largest and most influential, pulling indexes behind them.

AI stocks were firmer Tuesday, and Nvidia was the strongest force lifting the S&P 500 after rising 2.6% and trimming its loss for the month. That was even though the majority of stocks within the index fell Tuesday.

Microsoft, which is investing heavily in AI, ...