Wall Street falls further from its records as Nvidia, Palantir and other AI stars dim

NEW YORK (AP) — Wall Street faded on Tuesday following drops for Nvidia and other stars that have been riding the mania surrounding artificial-intelligence technology.

The S&P 500 fell 0.6% for a third straight loss, though it remains near its all-time high set last week. The Dow Jones Industrial Average added 10 points, or less than 0.1%, and the Nasdaq composite slumped 1.5%.

The heaviest weight on the market was Nvidia, whose chips are powering much of the move into AI. It sank 3.5%.

Another AI darling, Palantir Technologies, dropped 9.4% for the largest loss in the S&P 500. It’s seen bets build up sharply that its stock price will drop, according to S3 Partners. Only Meta Platforms has seen a bigger increase this year in what’s called “short interest,” where traders essentially bet a stock’s price will fall. Meta, the owner of Facebook and Instagram, sank 2.1%.

Criticism has been rising that stock prices across Wall Street have shot too high, too fast since hitting a bottom in April and have become too expensive. Palantir’s stock came into Tuesday with a tremendous gain of 130% for the year so far.

One way companies can make their stock prices look less expensive is to deliver growth in profits. Palo Alto Networks rose 3.1% after reporting earnings and revenue for the latest quarter that topped analysts’ expectations. The cybersecurity company also gave forecasts for profit and revenue in its upcoming fiscal year that were above Wall Street’s.

Home Depot’s gain of 3.2%, meanwhile, was the biggest reason the Dow did better than other indexes. The retailer reported results for the latest quarter that were a bit short of what analysts expected, but it delivered growth in revenue and stood by its prior forecasts for revenue and profit over the full year.

Other big retailers will give their latest profit updates in coming days. Lowe’s and Target are on deck for Wednesday, while Walmart and Ross Stores will report on Thursday.

The week’s headliner for Wall Street is likely arriving on Friday. That’s when the chair of the Federal Reserve, Jerome Powell, will give a highly anticipated speech in Jackson Hole, Wyoming. The setting has been home to big policy announcements from the Fed in the past, and the hope on Wall Street is that Powell may hint that cuts to interest rates are coming soon.

The Fed has kept its main interest rate steady this year, primarily because of the fear of the possibility that President Donald Trump’s tariffs could push inflation higher. But a surprisingly weak report on job growth across the country may be superseding that.

Traders on Wall Street widely expect the Fed to cut interest rates at its next meeting in September in order to give the economy a boost. Treasury yields have come down notably in the bond market as a result, and they eased on Tuesday.

The yield on the 10-year Treasury fell to 4.30% from 4.34% late Monday.

Strategists at Bank of America warn that Powell may not sound as inclined to cut interest rates as the market is expecting. He could remain non-committal and discuss the possibility of a worst-case scenario for the economy called “stagflation.” The Fed has no good tool to fix that situation, where the economy stagnates at the same time as inflation remains high.

On Wall Street, Viking Therapeutics tumbled 42.1% after the biopharmaceutical company released results from a clinical trial of an oral tablet that could treat obesity and other metabolic disorders.

Tegna rose 4.3% after Nexstar Media Group said it will buy the owner of 64 television stations across the country for $22 per share in cash. Nexstar, which owns the CW and local television broadcasters of its own, added 0.7%.

All told, the S&P 500 fell 37.78 points to 6,411.37. The Dow Jones Industrial Average added 10.45 to 44,922.27, and the Nasdaq composite fell 314.82 to 21,314.95.

In stock markets abroad, indexes rose in Europe after falling modestly in Asia.

Tokyo’s Nikkei 225 index slipped 0.4% as market heavyweight SoftBank Group Corp. fell 4% after it announced it was taking a $2 billion stake in U.S. chip maker Intel.

Intel climbed 7%. U.S. Commerce Secretary Howard Lutnick also confirmed in an interview on CNBC that the Trump administration may take an ownership stake in Intel.

This story has been corrected to reflect the correct year-to-date change in Palantir's stock price.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Trader Michael Milano left, works on the floor of the New York Stock Exchange, Monday, Aug. 18, 2025. (AP Photo/Richard Drew)

Traders Drew Cohen, left, and Ryan Falvey work on the floor of the New York Stock Exchange, Monday, Aug. 18, 2025. (AP Photo/Richard Drew)

Trader Michael Capolino left, works on the floor of the New York Stock Exchange, Monday, Aug. 18, 2025. (AP Photo/Richard Drew)

COLUMBUS, Ohio (AP) — Police in Ohio's capital city said Wednesday that they have gathered enough evidence to link a man charged in the double homicide of his ex-wife and her husband in their Columbus home last month to the killings.

Columbus Police Chief Elaine Bryant said in an Associated Press interview that authorities now believe Michael David McKee, 39, a vascular surgeon who was living in Chicago, was the person seen walking down a dark alley near Monique and Spencer Tepe's home in video footage from the night of the murders. His vehicle has also been identified traveling near the house, and a firearm found in his Illinois residence also traced to evidence at the scene, she said.

An attorney representing McKee could not be identified through court listings.

His arrest Saturday capped off nearly two weeks of speculation surrounding the mysterious killings that attracted national attention. No obvious signs of forced entry were found at the Tepes’ home. Police also said no weapon was found there, and murder-suicide was not suspected. Further, nothing was stolen, and the couple’s two young children and their dog were left unharmed in the home.

“What we can tell you is that we have evidence linking the vehicle that he was driving to the crime scene. We also have evidence of him coming and going in that particular vehicle,” Bryant told the AP. “What I can also share with you is that there were multiple firearms taken from the property of McKee, and one of those firearms did match preliminarily from a NIBIN (ballistic) hit back to this actual homicide.”

Bryant said that the department wants the public to keep the tips coming. Investigators were able to follow up on every phone call, email and private tip shared from the community to the department and some of that information allowed them to gather enough evidence to make an arrest, she said.

That work culminated in the apprehension of McKee in Rockford, Illinois, where the hospital where he worked — OSF Saint Anthony Medical Center — has said it is cooperating with the investigation. He has been charged with premeditated aggravated murder in the shooting deaths. Monique Tepe, who divorced McKee in 2017, was 39. Her husband, a dentist whose absence from work that morning prompted the first call to police, was 37.

McKee waived his right to an extradition hearing on Monday during an appearance in the 17th Judicial Circuit Court in Winnebago County, Illinois, where he remains in jail. Bryant said officials are working out details of his return to Ohio, with no exact arrival date set. His next hearing in Winnebago County is scheduled for Jan. 23.

Columbus Mayor Andrew Ginther said Wednesday that the city doesn't prioritize high-profile cases any more than others, noting that the city's closure rate on criminal cases exceeds the national average. The city also celebrated in 2025 its lowest level of homicides and violent crime since 2007, Ginther said.

“Every case matters. Ones that receive national attention, and those that don’t,” he told the AP. “Every family deserves closure and for folks to be held accountable, and the rest of the community deserves to be safe when dangerous people are taken off the street.”

Ginther said it is vital for central Ohioans to continue to grieve with the Tepes' family, which includes two young children, and loved ones, as they cope with “such an unimaginable loss.”

“I want our community to wrap our arms around this family and these children for years to come,” he said.

This undated booking photo provided by the Winnebago County Sheriff's Office Tuesday, Jan. 13, 2026, shows Michael David McKee, who was charged in the killing of his ex-wife, Monique Tepe, and her husband Spencer Tepe at their Columbus, Ohio, home on Dec. 30, 2025. (Winnebago County Sheriff's Office via AP)

Spencer and Monique Tepe's home in Columbus, Ohio, on Tuesday, Jan. 6, 2026. (AP Photo/Patrick Aftoora-Orsagos)

This image taken from video shows Michael David McKee walking into the courtroom on Monday, Jan. 12, 2026, in Rockford, Ill. (WIFR News/Pool Photo via AP)