Stocks Fall as AI Fears Rumble

US stocks fell on Thursday while oil prices rose with worries about a potential US-Iran conflict.

• The S&P 500 fell 19.41 points, or 0.3%, to 6,861.90, its first loss in four days.
• The Dow Jones Industrial Average fell 267.50 points, or 0.5%, to 49,395.16.
• The Nasdaq composite fell 70.91 points, or 0.3%, to 22,682.73.

Booking Holdings, the company behind Booking.com and Priceline, fell 6.2% for one of the market's sharper losses as worries continue about whether AI competitors could upend its industry and take its customers, the AP reports. Such concerns have been rolling through Wall Street recently and hitting various industries.

Booking Holdings dropped despite reporting a profit for the latest quarter that edged past analysts' expectations. The company's stock has lost roughly a quarter of its value so far this year already. Investors have been punishing stocks of companies seen as under threat by AI so suddenly and aggressively that analysts have likened it to a "shoot first-ask questions later" mentality. The doubts are hurting not just companies seen as under threat by AI but also the private-credit companies that have lent them money. Blue Owl Capital fell 5.9% to bring its loss for the year so far to almost 25%. Apollo Global Management dropped 5.2%, and Ares Management sank 3.1%.

Carvana sank 8% even though the retailer reported a stronger profit for the latest quarter than analysts expected. Investors may have been paying more attention to how much profit the auto retailer made per vehicle sold, which was lower than expected. Walmart, meanwhile, pushed and pulled on the market after jumping to an early gain of 2.7% and then flipping to a loss of 1.4%. The retail giant delivered stronger results for the latest quarter than analysts expected, but it gave a profit forecast for the upcoming year that fell short of estimates.

• Helping to limit the market's losses was Deere, which jumped 11.6% after the machinery maker reported a higher profit than analysts expected. CEO John May said it's seeing a continued recovery in demand from construction and smaller agricultural customers, though its global, large agricultural customers are still feeling pressure.

Some of the bigger gains in the S&P 500 came from stocks of oil companies, which climbed with the price of crude. A barrel of benchmark US crude rose 1.9% to $66.43, while Brent added 1.9% to $71.66 per barrel. Prices rose with worries about a possible military confrontation between the United States and Iran. President Trump has been raising the pressure on Iran, which is home to some of the world's largest oil reserves, because of its disputed nuclear program. If a conflict were to break out, it could constrict the global flow of oil. Occidental Petroleum jumped 9.2% after it also reported a stronger profit for the latest quarter than analysts expected.