Prosecutors paint Palisades Fire suspect as a premeditated arsonist in opening statements

LOS ANGELES (AP) — Prosecutors in the federal trial of the man accused of sparking last year’s deadly Palisades Fire laid out a narrative for jurors Wednesday of a premeditated arsonist who tried to cover his tracks, while his attorneys offered an alternate story of a man who tried his best to stop the blaze.

Attorneys presented opening statements in the trial of Jonathan Rinderknecht, who has pleaded not guilty to starting what became one of the most destructive wildfires in California history. Whether prosecutors can prove to jurors that Rinderknecht, 29, started a fire in Los Angeles on Jan. 1, 2025, and that it then turned into the Palisades Fire will be at the center of the trial.

Prosecutors say the Jan. 1 fire burned undetected deep in root systems before flaring back up on Jan. 7. Assistant U.S. Attorney Matt O'Brien told jurors that security camera footage shows where and when the fire ignited atop a hill, and investigators were able to place Rinderknecht nearby because he called 911 for help 16 times in quick succession on the evening of Jan. 1.

O'Brien said that Rinderknecht was the only person there that evening. He said that after firefighters arrived, Rinderknecht followed them up the hill to take videos of them putting out the blaze. Investigators later seized a barbecue lighter from his car that he admitted to having with him on the trail.

Defense attorney Steve Haney said Rinderknecht was on the hilltop near the fire's ignition that night, but only to watch the fireworks after dropping off Uber passengers nearby. Haney said multiple witnesses as well as first responders will testify that they heard fireworks in the area around the time the fire ignited.

“When all the evidence is in, there will be one thing missing: proof that Jonathan Rinderknecht started that fire on Jan. 1,” Haney told jurors.

The Palisades Fire ultimately killed 12 people and destroyed thousands of homes as it incinerated hillside neighborhoods in Pacific Palisades and the city of Malibu. Rinderknecht faces at least five years in prison if convicted of charges that also include malicious destruction by means of a fire.

O'Brien, in his opening, painted a picture for the jury of a troubled young man who was lonely and angry at the world after a recent breakup.

“He wanted revenge — revenge against society because he blamed society for all his troubles,” he said.

O'Brien also showed jurors a prompt that Rinderknecht had entered into ChatGPT six months earlier. “So on the far left, we're going to have a burning forest and then you have a bunch of people running away from that,” the prompt began.

Haney reminded jurors it didn't matter if they liked his client or “approve of the way Jonathan uses his computer.” He said Rinderknecht’s behavior after the fire, from calling 911 to cooperating with investigators, demonstrated his innocence.

Haney played an audio recording of Rinderknecht’s conversation with a 911 operator during which he reported a fire in the Pacific Palisades.

When federal investigators knocked on Rinderknecht's door, he didn’t hide or refuse to answer, Haney said. Rinderknecht even agreed to drive back to the Palisades to help investigators pinpoint the start of the fire.

“It’s the voice and actions of a man who was trying to stop the fire,” Haney said.

Leading up to the trial, Haney has argued that Rinderknecht is being made as a scapegoat for the Los Angeles Fire Department’s failure to fully extinguish the Jan. 1 blaze.

Judge Anne Hwang has ruled that the defense can’t introduce evidence or arguments about alleged negligence by the Fire Department, saying it was irrelevant and could confuse the jury. Defense attorneys had planned to include testimony from a firefighter that the fire was visibly smoldering when first responders left before it reignited days later.

Prosecutors began presenting their case by calling witnesses with California State Parks and the Santa Monica Mountains National Recreation Area to establish that the fire affected areas with federal jurisdiction.

A chimney stands on a lot covered with weeds and wildflowers in front of a home under construction more than a year after the Palisades Fire in the Pacific Palisades neighborhood of Los Angeles, Thursday, June 4, 2026. (AP Photo/Jae C. Hong)

An aerial view shows homes under construction amid empty lots more than a year after the Palisades Fire in the Pacific Palisades neighborhood of Los Angeles, Thursday, June 4, 2026. (AP Photo/Jae C. Hong)

D. Berryman walks her dog, Tiny Dancer, past a fire-damaged building more than a year after the Palisades Fire in the Pacific Palisades neighborhood of Los Angeles, Thursday, June 4, 2026. (AP Photo/Jae C. Hong)

FILE - This undated photo provided by the U.S. Attorney's Office shows Jonathan Rinderknecht. (US Attorney's Office via AP, File)

An aerial view shows the cleared site of a mobile home park more than a year after the Palisades Fire in the Pacific Palisades neighborhood of Los Angeles, Thursday, June 4, 2026. (AP Photo/Jae C. Hong)

NEW YORK (AP) — Another sell-off for artificial-intelligence stocks helped drag the U.S. market sharply lower Wednesday, as Wall Street’s former superstars continue to face heavy scrutiny for their success.

The S&P 500 dropped 1.6% for its first back-to-back drop in three weeks and is back to where it was in early May. The Dow Jones Industrial Average tumbled 953 points, or 1.9%, and the Nasdaq composite led the market lower with a 2% slide.

Wall Street has been shaky since last week, when AI stocks went from roaring to records to suddenly turning lower. Among the worries is that their prices have simply shot too high, too fast because of AI mania. The question now is whether the break lower has cleared out excessive optimism that may have built into their stock prices, or if it’s the start of a longer downturn.

Super Micro Computer, which sells AI servers, tumbled 28% after saying late Tuesday that it plans to raise $7 billion in cash by selling shares of stock and convertible preferred stock. Such moves raise the most money for companies when their stock prices are high, and they can dilute the ownership stakes of existing shareholders.

Micron Technology swung from an early loss of nearly 4% to a modest gain and back to a loss of 4.7%. It’s coming off a wild stretch where it sank 7.7% last Thursday, then plunged another 13.3% Friday and rallied 9.9% Monday. Despite all the swings, the computer memory maker’s stock is still up 212.5% for the year so far.

Nvidia, the chip company that’s grown into a nearly $4.9 trillion behemoth because of the AI boom, was the heaviest weight on the S&P 500 after falling 3.7%. The second-heaviest was another AI winner, Broadcom, which fell 5.1%.

Some of the pressure on AI stocks could also be coming from investors pulling cash out to prepare for high-profile debuts on the U.S. stock market for several AI giants. SpaceX’s initial public offering could come later this week, for example.

Weakening stocks for companies with big fuel bills also pulled the market lower. United Airlines sank 6.2%, and cruise-operator Carnival fell 6.3% after oil prices rose due to the latest fighting in the war with Iran.

The price for a barrel of Brent crude oil rose 1.8% to $93.10 after President Donald Trump warned Iran would “pay the price” for stalled negotiations between the two on their war. The war has been keeping the Strait of Hormuz effectively shut to oil tankers, which has prevented the delivery of crude from the Persian Gulf to customers worldwide.

High oil prices have sent inflation higher, and a report on Wednesday showed that prices for U.S. consumers jumped in May at the highest speed in three years.

But Treasury yields nonetheless held relatively steady in the bond market because the figures were pretty much exactly what economists had forecast. The rise in an important underlying measure of inflation, meanwhile, was not as bad from April through May as economists expected.

The yield on the 10-year Treasury edged up to 4.54% from 4.53% late Tuesday. The two-year Treasury yield, which more closely tracks expectations for what the Federal Reserve will do with its overnight interest rates, held at 4.13%.

Traders have been building bets recently that the Fed will have to hike its main interest rate at least once this year, given how high inflation is and how strong the U.S. job market remains. Wednesday’s inflation update didn’t sway them much, according to data from CME Group.

High yields can slow entire economies and undercut prices for all kinds of investments, including stocks and cryptocurrencies. They hit investments seen as the most expensive in particular, and some critics are calling AI a bubble where investment inflated too far.

All told, the S&P 500 fell 119.66 points to 7,266.99. The Dow Jones Industrial Average dropped 953.33 to 49,918.78, and the Nasdaq composite sank 509.32 to 25,169.50.

In stock markets abroad, indexes in Europe were mixed following sharper drops in Asia.

South Korea’s Kospi tumbled 4.5%, hurt by losses for tech giants Samsung Electronics and SK Hynix.

Tokyo’s Nikkei 225 sank 1.9% after data showed Japan’s producer price index, a measure for prices at the wholesale level, rose in May at the fastest pace in more than three years. Shares of technology and telecommunications giant SoftBank Group, which has a strong AI focus, lost 8.3%.

AP Business Writers Chan Ho-him and Matt Ott contributed to this report.

Options traders Steven Rodriguez, left, and Marty Handler work on the floor of the New York Stock Exchange, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

Options trader Ravi Bhandari works on the floor of the New York Stock Exchange, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

Currency traders pass by a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 10, 2026. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 10, 2026. (AP Photo/Ahn Young-joon)

A currency trader talks on the phone near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, June 10, 2026. (AP Photo/Ahn Young-joon)