Investors have become so skittish of stocks linked to AI that it’s dragging down the entire U.S. market.

The S&P 500 climbed 0.8% and recovered nearly three-quarters of its sharp drop from the day before.

Traders feel that Monday’s 1% decline on fears that AI will trigger an economic doom cycle was overcooked.

Investors have become so skittish of stocks linked to AI that it’s dragging down the entire U.S. market.