AI-linked stocks took another tumble, dragging Wall Street back to levels it last saw five weeks ago, according to Audacy.
The latest sell-off hit a range of AI-exposed names. According to a Yahoo Finance report, shares of Wix, C3.ai, and Unity all traded down during the afternoon session.
The slide followed a decision by the Federal Reserve. Per the Yahoo Finance report, the central bank held its benchmark interest rate steady at 3.5% to 3.75%. That rate has been unchanged since late 2025, when the Fed cut by three-quarters of a percentage point.
Interest rates matter a great deal to high-growth technology stocks. When borrowing costs stay elevated, the future profits that investors are betting on become worth less in today's terms, which tends to weigh on the richly valued companies riding the artificial-intelligence boom. Holding rates steady, rather than cutting further, can disappoint a market that had been pricing in more relief.
The broader takeaway, as framed by Audacy, is that the gains built up over the past month and a half have essentially evaporated. A rally that lifted the market is now back at its starting point, underscoring how quickly sentiment around AIShares can swing.
The sources here name specific casualties — Wix, C3.ai, and Unity — but the move was described as a wider retreat across AI stocks rather than a problem isolated to any single company.
Why it matters: AI enthusiasm has been a major engine of the stock market's recent strength, so when these names sell off in unison and wipe out weeks of progress, it signals how fragile that momentum can be — and how closely it is tied to the Federal Reserve's next move.