Dow tumbles after hitting record high, while Broadcom latest to fuel AI bubble fears

Market Overview - Stocks on Wall Street experienced a significant decline, with the Dow Jones Industrial Average dropping over 200 points (0.5%) to 48,462, the S&P 500 falling by 1.1%, and the Nasdaq losing 420 points (1.8%) [1] - Despite a previous rise to a new all-time intraday record of 48,886, the market sentiment shifted negatively due to concerns surrounding AI investments [1][3] Company-Specific Developments - Broadcom's shares fell more than 10% after the company warned of reduced future margins on AI system sales, raising concerns about the profitability of AI investments [2] - Other chip stocks, including Advanced Micro Devices, saw a decline of 1%, while a broader chips index fell by 1.5% following Oracle's weak forecast [2] - Nvidia's shares slipped by 1.9% amid reports of the company evaluating an increase in H200 chip production to meet demand from China [9] - Lululemon Athletica's stock surged by 12% after raising its annual profit forecast, despite the departure of CEO Calvin McDonald [9] - Cannabis companies listed in the US saw stock increases, with Canopy Growth rising by 23% and Tilray Brands climbing by 30% following reports of potential regulatory changes by President Trump [10] Economic Indicators - Policymakers expressed concerns about inflation remaining too high to justify lower borrowing costs, despite traders pricing in a total of 50 basis points of rate cuts by the end of 2026 [6]