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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%.

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

LAS VEGAS (AP) — Nevada Gov. Joe Lombardo, a Republican, will face Democratic Attorney General Aaron Ford in a battle to hold onto his seat in November, setting up what is considered one of the most competitive governor’s races in the country.

Both won their party’s nominations Tuesday as Nevada held primaries for several key offices, including a swing congressional seat in the Las Vegas area where the GOP nominated Marty O’Donnell, a composer known for writing the soundtrack to the video game “Halo,” to face Democratic Rep. Susie Lee in November.

The voting came as Nevada grapples with an affordable housing shortage, exploding energy demand from data centers and federal cuts to key state programs.

The state has a closed primary, meaning only registered Democrats and Republicans voted in party contests after an effort to open them failed in 2024.

Several primaries featured matchups between candidates backed by party leaders and political outsiders promising change. Come November, the governor’s race is considered one of the most competitive in the country, and holding on to the 3rd Congressional District is considered crucial for Democrats’ hope of retaking the U.S. House.

Here is a look at the most prominent races:

Economy, rising prices set to dominate governor’s race

Lomardo is considered one of the most vulnerable governors in the country this fall as both parties expect Democrats to do well nationwide.

Ford, who had the backing of the Democratic congressional delegation and former Vice President Kamala Harris, beat Alexis Hill, a county commissioner in northern Nevada, in his party’s primary.

Ford and Hill focused their campaigns on affordability, as the state continues to see a shortage of affordable housing, some of the highest gas prices in the country and cuts to federal healthcare and food assistance programs.

Ford argued that both the governor and President Donald Trump are responsible for Nevadans’ economic woes. At his victory party, he promised to lower costs for families.

“This is all about strengthening the working class,” he said. “And we will once again be a state where you can afford to live your own version of the American dream.”

Lombardo did not comment after the race was called, and his campaign referred inquiries to a political action committee supporting him. John Burke, a spokesman for the Better Nevada PAC, said Ford has “never shown up for Nevadans, and he wouldn’t be any different if he wins this election.”

At a polling location earlier in the day, Lombardo vowed to focus on housing affordability during a second term.

“We’re running again because we still got a lot of work to do in that space,” he said as he thanked campaign volunteers outside a polling place in Las Vegas, where they huddled under a canopy in the 94 F (34 C) heat.

Joshua Garcia of Las Vegas backed Lombardo, saying, “He just seems like a really good guy. He gets things done, he cares about the local community and that’s what’s important.”

Blake Howard, a Las Vegas Democrat, supported Ford, hoping his experience will help him lower prices. Of Lombardo, Howard said: “Everything just seems pretty much the same if not even worse with what he’s done.”

Democrats hope to put northern Nevada US House district in play

In the Republican contest to replace longtime Rep. Mark Amodei, who is retiring, Trump endorsed David Flippo, a loyalist of the president who has never held elected office. Amodei and Lombardo backed James Settelmeyer, a former state senator with a long political track record. The race was too early to call Tuesday night.

The district covers northern Nevada and includes Reno and Carson City, the capital, along with an immense rural expanse.

Trump-endorsed candidates have seen success in primaries elsewhere, underscoring his unrivaled power over the Republican Party as he enters the last years of his presidency. He easily won the district in the 2024 election.

The GOP nominee has a good chance of winning in November, as registered Republicans outnumber Democrats by 70,000 in the 2nd District. A Republican has held the seat since the district was created in the 1980s.

Still, Democrats hope to entice the large number of nonpartisan voters in the district this fall. They nominated Ford’s chief of staff, former majority floor leader Teresa Benitez-Thompson.

Both parties gear up for fight over swing district in southern Nevada

Nevada’s other three members of Congress, all Democrats, were expected to win their primaries easily.

In southern Nevada’s 3rd District, Republicans battled to determine who will face Lee in what is considered the most competitive congressional district in Nevada because of its narrow Democratic registration advantage, its high number of nonpartisan voters and a history of razor-thin election margins. Both Lee and Trump won there narrowly in 2024.

Candidates included the Trump-backed O’Donnell, who ran unsuccessfully for the seat in 2024. He defeated Jeff Gunter, a dermatologist and former ambassador to Iceland; neurosurgeon Aury Nagy; and businessperson Tera Anderson.

The candidates ran on border security, energy independence and decreasing the federal debt. O’Donnell thanked Trump in his statement and turned his attention to the incumbent, saying, “Susie Lee has lost touch with Southern Nevada, and come November, she will lose her job.”

Lee said Nevadans need someone who will stand up to what she called a corrupt administration and not “more rubber stamp Republicans.”

GOP attorney general, secretary of state candidates question elections

With Ford term-limited and running for governor, the opening has prompted competitive primaries for the state’s top law enforcement post.

Senate Majority Leader Nicole Cannizzaro won the Democratic nomination, defeating Treasurer Zach Conine. Both campaigned on promises to take on the Trump administration, following in the footsteps of Ford, who filed numerous lawsuits against the federal government.

For the Republicans, Trump-backed attorney Adriana Guzmán Fralick won the nomination over Douglas County commissioner Danny Tarkanian. Tarkanian, son of legendary University of Nevada, Las Vegas basketball coach Jerry Tarkanian, previously ran unsuccessfully in multiple congressional races.

Both candidates campaigned on “election integrity,” casting doubt on voting security. Nevada is one of the swing states where Trump falsely claimed the 2020 election was stolen, despite no evidence of widespread fraud.

Several Republicans also ran for secretary of state, the office that oversees elections, including some who falsely claimed the 2020 election was stolen from Trump. The winner of the primary will take on Democratic incumbent Cisco Aguilar, who also won Tuesday.

The GOP candidates included Jim Marchant, a former state lawmaker and perennial candidate who has said the 2020 election “was probably stolen”; Sharron Angle, a former state lawmaker who was part of an effort to block the certification of Nevada’s 2020 election results; and Shirley Folkins-Roberts, an attorney who received Lombardo’s endorsement and has denied there is widespread voting fraud in Nevada.

All the candidates supported implementing voter ID, which will be on the ballot for the second time in November after the question passed by a wide margin in 2024.

A large burning cross — a historic symbol of hate and intimidation against Black Americans — was discovered in a Chicago park where former President Barack Obama famously delivered his acceptance speech when he was elected the nation’s first Black president.

Tuesday afternoon’s act sent shock waves through a city where more than one in four people are Black. Some people drove or walked by, staring, and a video of the cross-burning gained traction online.

The video, taken by a motorist, shows the wooden cross engulfed in bright orange flames as it leans against a tree in Grant Park, located in the core of the city’s downtown and near Lake Michigan.

Mayor Brandon Johnson said he was “deeply disturbed” by the images.

“Hate has no place in our city. Every Chicagoan deserves to feel safe, protected, and respected while going about their day or enjoying our public spaces,” Johnson, who is Black, said on a post on X Wednesday. “We will continue working across city government to uphold that standard and ensure Chicago remains a welcoming, inclusive, and safe place for all.”

Chicago police urged the public to come forward with any information. A community alert issued by police included an image of a person walking away from the area.

Police said the person was seen “fleeing from the scene” where an object was constructed and burned in the park. The alert provided no update on the arson investigation.

The Chicago Fire Department confirmed the flaming object was a cross and said officials put out the fire.

Officials with a local Catholic church, The Faith Community of Saint Sabina, posted on social media a $10,000 reward for information leading to the arrest and conviction of anyone who was involved. The Rev. Michael Pfleger, senior pastor, called the cross burning an act of hate.

“It cannot be tolerated,” Pfleger told TV station FOX 32. “I really believe it should be treated as a hate crime just like a swastika is.”

Cross burnings have historically been symbols of hate

Keinika Carlton, 43, was driving home from running errands with her daughter and mother-in-law when they saw the cross on fire. She said she felt a combination of shock, sadness and disgust, as well as curiosity.

“Is this a racial thing? Is this a religious thing?” she said. “As Black women, of course, our first thought is racial, because burning crosses are known to be used as a tactic, an act of violence toward Black Americans in the South.”

Carlton estimated the cross was at least 6 feet (1.8 meters) tall. As they slowed down to shoot a video of the flames, she saw other cars also slowing down and people walking nearby, staring at the cross burning.

While the motive behind the burning cross was not immediately clear, cross burnings in the U.S. have historically been seen as “symbols of hate” that are “inextricably intertwined with the history of the Ku Klux Klan,” according to a 2003 U.S. Supreme Court decision written by the late Justice Sandra Day O’Connor. The justices ruled that the First Amendment allows bans on cross burnings only when they are intended to intimidate because the action “is a particularly virulent form of intimidation.”

Alyna Carlton, 22, said she never thought she would see something like that in her lifetime.

“It kind of really opened my eyes, had me realize that I’m not that far removed from the past.”

Some attribute the act to divisive political times

Gina Miranda Samuels, faculty director of the Center for the Study of Race, Politics and Culture at the University of Chicago, said the burning of crosses may no longer create the degree of fear it did decades ago — but there’s sadness at the reminder of the level of hate that still exists.

“The burning a cross in Grant Park, personally, does not instill terror,” she said. “If it was on my personal lawn, that would concern me. This doesn’t cause me to want to flee Chicago.”

Miranda Samuels laid some of the blame on the current political climate.

“I do think we’re living in a time when we have a president that stokes this kind of thing and invites this type of stuff,” she said. “People feel emboldened and are invited to see how far they can go.”

Frank Chapman, executive director of the National Alliance Against Racist and Political Repression and a Chicago resident, agreed. He pointed to how people who stormed the U.S. Capitol on Jan. 6, 2021, were ultimately not punished. President Donald Trump pardoned, commuted prison sentences or ordered the dismissal of cases for all of the nearly 1,600 people charged in the attack.

“The same kind of people got the same white supremacist mentality as a cross-burning,” Chapman said. “So, they figured like they got a license now … with people pardoned and more or less shaking hands with the devil.”

Next week, Obama will be joined by other former presidents and dignitaries to dedicate his presidential library, named the Obama Center, on a sprawling complex less than 10 miles (16 kilometers) south of Grant Park. The center opens to the public on Juneteenth, the federal holiday marking the end of slavery in the U.S.

___ Associated Press writers Terry Tang in Phoenix and Corey Williams in Detroit contributed to this report.